Yesterday we looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
Magellan Financial Group Ltd (ASX: MFG)
According to a note out of UBS, its analysts have retained their sell rating and cut their price target on this fund manager’s shares to $15.40. This follows the release of another update which revealed a further reduction in its funds under management and news that a ratings agency has downgraded its flagship Global Fund. The Magellan share price is trading at $17.92 this afternoon.
Reece Ltd (ASX: REH)
A note out of Citi reveals that its analysts have retained their sell rating and cut their price target on this plumbing parts company’s shares to $16.83. While Reece delivered a solid half year result last month, it isn’t enough for a change of rating. It continues to struggle to find a way to justify the multiples (34x FY22e earnings) that the company’s shares trade on. The Reece share price is fetching $19.97 on Tuesday.
Zip Co Ltd (ASX: Z1P)
Analysts at Macquarie have retained their underperform rating and cut the price target on this buy now pay later provider’s shares by almost 50% to $1.85. This follows news that Zip is acquiring Sezzle Inc (ASX: SZL) and raising $200 million to support the growth of the two businesses. Macquarie isn’t sure about the price Zip is paying for Sezzle. It also has concerns over rising bad debts and expenses, which has led to sharp reductions its earnings forecasts. The Zip share price is trading at $2.10 on Tuesday afternoon.
The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.
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More reading
- Why is the Sezzle (ASX:SZL) share price falling following Zip’s takeover offer?
- ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
- Why is the Zip (ASX:Z1P) share price sinking 11% today?
- These were the worst performing ASX 200 shares in February
- 5 things to watch on the ASX 200 on Tuesday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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