Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were quite bearish.
Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:
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 this stock exchange operator's shares to $70.00. This follows the release of the ASX Ltd's activity report for December and the 2019 calendar year. The broker has been crunching the numbers and expects the company to report a ~5% increase in revenue in the first half of FY 2020. However, it doesn't expect earnings to grow as quickly due to increasing costs. As a result, it believes its shares are overvalued based on its current growth profile. The ASX Ltd share price ended the week at $82.17.
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 last week. According to the note, whilst Citi is a fan of Magellan, it continues to have issues with its valuation. The broker also has a few concerns over the moderation of its investment outperformance. Magellan's shares were changing hands at $62.89 at Friday's close.
Platinum Asset Management Ltd (ASX: PTM)
Another note out of Citi reveals that its analysts are bearish on this fund manager as well. According to the note, the broker has a sell rating and $3.90 price target on Platinum's shares. Whilst Citi notes that its fund outflows appear to be moderating, it doesn't expect any meaningful fund inflows in the near term. This is because its investment performance has been reasonably disappointing in recent times. The Platinum share price ended the week at $4.74.
