Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.
Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
Insurance Australia Group Ltd (ASX: IAG)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $3.90 price target on this insurance company’s shares. Its analysts believe IAG is growing its gross written premium (GWP) slower than system, which is extending its ongoing market share losses. The broker doesn’t appear confident that this trend will reverse any time soon and thus feels investors would be better off looking elsewhere in the sector. The IAG share price ended the week at $4.45.
Magellan Financial Group Ltd (ASX: MFG)
A note out of UBS reveals that 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 (FUM). In addition, the broker highlights that a ratings agency has downgraded its flagship Global Fund. This may not bode well for its FUM. The Magellan share price was fetching $15.48 at Friday’s close.
Reece Ltd (ASX: REH)
Analysts at Citi have retained their sell rating and cut their price target on this plumbing parts company’s shares to $16.83. According to the note, although Citi acknowledges that Reece delivered a solid half year result last month, it isn’t enough for a change in its recommendation. The broker continues to struggle with the multiples that the company’s shares trade on. The Reece share price was trading at $18.94 on Friday afternoon.
The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- These were the worst performing ASX 200 shares last week
- Playing limbo… Magellan (ASX:MFG) share price hits 7-year low
- Why Magellan, Nick Scali, Qantas, and Zip shares are tumbling today
- 5 ASX 200 shares slumping to 52-week lows on Friday
- This ASX share just halved in price, so why is it time to buy?
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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/WMBbCZ9
Leave a Reply