On Monday I looked at three shares that leading brokers have named as buys this week.
Not all shares on the ASX are in favour right now, though. Three that have been given sell ratings are listed below, here's why brokers are bearish on them:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Goldman Sachs, its analysts have downgraded this iron ore producer's shares to a sell rating and reduced the price target on them to $3.90. The broker made the move after incorporating recent commodity price downgrades it made earlier this month. Although Goldman expects a stronger December quarter from Fortescue, it believes low grade iron ore prices will decline in the second quarter due to lower benchmark prices. This is likely to weigh on Fortescue's financial performance and investor sentiment. Fortescue's shares are currently trading at $4.47.
Platinum Asset Management Limited (ASX: PTM)
A note out of Morgan Stanley reveals that its analysts have downgraded this asset manager's shares to an underperform rating and slashed the price target on them to just $3.50. According to the note, the broker is concerned that Platinum Asset Management could have its shares de-rated in the near future due to its performance and fund outflows. Last week the asset manager warned that it would earn little in the way of absolute return related performance fee income for the half-year ending December 31 after recent falls in equity markets. The Platinum Asset Management share price is also currently trading at $4.47.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Credit Suisse have retained their underperform rating but increased their price target on this private hospital operator's shares to $51.10. According to the note, the broker has raised its price target after factoring the Capio acquisition into its estimates. Credit Suisse does have concerns with the acquisition, though. It has pointed to the fact that Capio operates in four new markets with different funding systems as a risk. In addition to this, it sees limited synergy opportunities due to Capio's focus on acuity care. The Ramsay share price is currently trading at $58.50.
