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 caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
Magellan Financial Group Ltd (ASX: MFG)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this fund manager’s shares slightly to $48.00. Although Magellan delivered a result largely in line with expectations and is looking to broaden its offering with new product launches, it isn’t enough for a change in rating. Morgan Stanley continues to believe that its shares are expensive in comparison to its global peers. The Magellan share price ended the week at $65.36.
Sonic Healthcare Limited (ASX: SHL)
Analysts at UBS have retained their sell rating and $28.00 price target on this healthcare company’s shares ahead of its full year results. According to the note, the broker expects Sonic Healthcare to deliver solid top line growth, but a 7% decline in earnings in FY 2020. And while it looks set to benefit from strong COVID-19 testing demand, it fears this may be offset by weakness in other areas. In light of this, it feels its shares are fully valued and retains its sell rating. Sonic Healthcare’s shares last traded at $34.03.
WiseTech Global Ltd (ASX: WTC)
A note out of Citi reveals that its analysts have downgraded this logistics solutions company’s shares to a sell rating with a reduced price target of $18.40. The broker made the move after revising its earnings estimates lower to reflect the challenging economic environment and slowing M&A activity. It expects this to weigh on its revenue growth in the near term. The WiseTech share price ended the week at $19.93.
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More reading
- My favourite 3 ASX share reports of the week
- Is now a good time to buy Magellan shares?
- ASX 200 drifts 0.1% lower, CBA reports solid FY20 result
- Why the Magellan share price might be a post-earnings buy today
- Earnings season: Magellan share price climbs higher after positive annual report
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Top brokers name 3 ASX shares to sell next week appeared first on Motley Fool Australia.
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