On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here’s why they are bearish on them:
Cochlear Limited (ASX: COH)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this hearing solutions company’s shares to $185.00. According to the note, a survey by the broker shows that Cochlear has increased its market share over the last six months. However, it notes only a limited impact by the new Nucleus Profile Plus. Overall, it continues to believe that the market has yet not priced in the risk of increasing competition and retains its underperform rating. Cochlear’s shares are changing hands at $229.06 today.
Medibank Private Ltd (ASX: MPL)
Analysts at Credit Suisse have retained their underperform and $2.90 price target on this private health insurer’s shares. According to the note, it remains bearish on Medibank Private despite it being approved for an above-industry average 3.27% increase in premiums in 2020. Overall, the broker believes that its shares have not fallen enough to reflect the ongoing risks to its earnings in the near-term. Medibank Private’s shares are up 0.5% to $3.27 on Tuesday.
National Australia Bank Ltd (ASX: NAB)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this banking giant’s shares to $24.00. Morgan Stanley believes the bank is lagging its rivals in respect to efficiency. As a result, it believes that it will need to raise significant capital (~$3.5 billion) in order to fund a business transformation, strengthen its balance sheet, and to cover potential regulatory action. NAB’s shares are down over 1% to $25.06 on Tuesday.
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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 owns shares of National Australia Bank Limited. 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.