On Wednesday I looked at three ASX shares that 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 them:
Medibank Private Ltd (ASX: MPL)
According to a note out of the Macquarie equities desk, its analysts have downgraded this private health insurer's shares to an underperform rating from neutral but lifted the price target on them to $3.05. Although the broker expects Medibank to reveal strong returns and margins in the second half, it believes the share price rally has left its shares overvalued now. The Medibank share price is up 43% this year and changing hands at $3.58 this afternoon.
Platinum Asset Management Ltd (ASX: PTM)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.40 price target on this asset manager's shares following its latest funds under management update. Although Platinum's closing funds were higher than it expected, it continues to be concerned that outflows from its poor investment performance will weigh on the company's financial results in the near term. The Platinum share price is down 2% to $4.91 on Thursday.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this private hospital operator's shares to $65.00. According to the note, the broker appears more positive on Ramsay, but sees little by way of upside for its shares in the near term due to the tough trading conditions it continues to face in the key Australian market. The Ramsay share price is up 27% since the turn of the year and is trading at $73.53 this afternoon.
