On Tuesday 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:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, it has downgraded this payments company's shares to a sell rating with a $13.00 price target. Although Afterpay's third quarter update was in line with its expectations, it appears concerned by the unknown impacts of the coronavirus pandemic. It also fears that the company will have to sacrifice growth in order to manage bad debts. The Afterpay share price is changing hands at $27.81 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this fund manager's shares to $40.00. According to the note, the broker feels that Magellan's shares deserve to trade at a premium to its peers, but not to the extent they are trading at currently. It also believes that retail inflows will be softening in the current environment and has downgraded its earnings estimates to reflect this. Magellan's shares are trading at $48.53 this afternoon.
ResMed Inc. (ASX: RMD)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and lifted the price target on this medical device company's shares to $18.60. According to the note, while ResMed is benefiting from increasing ventilator sales because of the pandemic, it fears that this will be offset by a reduction in new sleep apnoea patients and sleep treatment product sales. Overall, it sees downside risk to its earnings at present. Something which it feels the market is not factoring in. ResMed's shares are changing hands for $24.99 on Wednesday.
