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:
Cochlear Limited (ASX: COH)
Analysts at Citi have downgraded this hearing solutions company's shares from neutral to a sell rating with a $198.00 price target. According to the note, the broker has made the move largely on valuation grounds after a strong share price rise since the start of the year. In addition to this, Citi believes that its growth in the United States could be lower than the market expects due to a potential focus on market share preservation. The Cochlear share price has pushed 1% higher to $222.13 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
According to a note out of the Macquarie equities desk, its analysts have downgraded this fund manager's shares to an underperform rating from neutral. The broker has, however, lifted its price target on Magellan's shares by ~15% to $45.00. Whilst Macquarie acknowledges that Magellan has continued to perform well and experienced solid fund inflows this year, it believes its shares are overvalued now following an incredible run this year. Prior to today Magellan's shares were up almost 155% since the turn of the year. This downgrade certainly appears to have hurt investor sentiment. In afternoon trade the Magellan share price is down 5.5% to $56.14.
Syrah Resources Ltd (ASX: SYR)
Another note out of the Macquarie equities desk this morning reveals that its analysts have downgraded this graphite producer's shares all the way from outperform to an underperform rating with a reduced price target of 90 cents. According to the note, the broker made the move after Syrah's quarterly update missed on both costs and production. The Syrah share price is down 6.5% to 98.5 cents this afternoon.
