Yesterday we looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
Beach Energy Ltd (ASX: BPT)
According to a note out of Macquarie, its analysts have downgraded this energy producer’s shares to an underperform rating with an improved price target of $1.50. This follows the release of a half year result that fell short of the broker’s expectations. And while it has upgraded its earnings forecasts and price target to reflect production growth, it believes investors would be better off with other cheaper options in the sector. The Beach share price has fallen heavily today and is now trading at $1.46.
Insurance Australia Group Ltd (ASX: IAG)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this insurance giant’s shares to $3.90. While IAG surprised to the upside with its half year results, this isn’t enough for a more positive rating. Morgan Stanley believes there are risks that are not being accurately priced in by the market. This is particularly the case with claims inflation. The IAG share price is fetching $4.74 today.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at UBS have retained their sell rating and $7.00 price target on this fund manager’s shares. The broker continues to believe that the risks are to the downside for Magellan. This is due to fund outflows, staff retention concerns, and its belief that Magellan may need to cut its fees to reduce retail fund outflows. This could put pressure on the company’s margins. The Magellan share price is trading at $18.12 currently.
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 Adore Beauty, Beach, Fortescue, and Praemium shares are falling
- These 3 ASX 200 shares are topping the volume charts this Tuesday
- Not so sunny: why the Beach Energy (ASX:BPT) share price is sinking 10% today
- We’ll pass thanks: Top broker downgrades IAG (ASX:IAG) share price to hold
- ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks
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.
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