On Tuesday 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:
ASX Ltd (ASX: ASX)
According to a note out of Credit Suisse, its analysts have retained their underperform rating but lifted the price target on its shares to $70.00. This follows the release of the stock exchange operator's activity report for December and the 2019 calendar year. Credit Suisse has crunched the numbers and expects a ~5% increase in revenue in the first half. However, increasing costs means earnings may not grow as strongly. In light of this, it believes its shares are overvalued for its current growth profile. The ASX Ltd share price is down almost 1% to $80.47 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Citi have retained their sell rating and trimmed the price target on this fund manager's shares to $52.00. This follows the release of its funds and performance fee update on Tuesday. According to the note, the broker is a fan of Magellan, but not of its valuation. It also has a few concerns over the moderation of its investment outperformance. Magellan's shares are changing hands at $58.85 on Wednesday.
Pendal Group Ltd (ASX: PDL)
Another note out of Credit Suisse reveals that its analysts have downgraded this fund manager's shares to an underperform rating and cut the price target on them to $8.15. According to the note, the broker believes that Pendal could have another challenging year in FY 2020. It also notes that industry data is pointing to further fund outflows for the company's UK-based JO Hambro business. The Pendal share price is down 4.5% to $8.59 this afternoon.
