On Monday 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:
ASX Ltd (ASX: ASX)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut the price target on this stock exchange operator’s shares to $64.08. Although the broker notes that activity in March was impressive and has lifted its earnings forecasts accordingly, it still has a problem with its valuation. It notes that its shares are trading at a premium to both the market and its global peers. As a result, it has retained its sell rating on the company’s shares. ASX Ltd’s shares are changing hands for $80.68 on Tuesday.
Coca-Cola Amatil Ltd (ASX: CCL)
Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut the price target on this beverage company’s shares to $8.90. According to the note, the broker has revised its earnings estimates lower by 21.4% and 10.7%, respectively, in FY 2020 and FY 2021. This reflects its belief that the company will experience a material reduction in demand due to the coronavirus crisis. In addition to this, the broker has cut its dividend forecast for FY 2020 from 48 cents per share to 38 cents per share. The Coca-Cola Amatil share price is trading at $9.54 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Credit Suisse have retained their underperform rating and trimmed the price target on this fund manager’s shares to $36.50. According to the note, in response to its latest funds under management update, Credit Suisse notes that Magellan’s fund inflows are slowing and its performance fees are falling. But its biggest concern is its retail fund outflows during March. It believes this could weigh on its performance and pose downside risk to forecasts. Magellan’s shares are up at $48.99 today.
These 3 stocks could be the next big movers in 2020
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
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