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.
Those may be the shares to sell, but here are the shares that have just been rated as buys.
Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.
Stock #1 is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Stock #2 is another high-growth business trading near a 52-week low all while offering a 4.7% grossed-up yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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.