On Wednesday 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:
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this fund manager's shares to $47.00. According to the note, Magellan delivered a much stronger than expected funds under management update for April. However, despite this impressive performance, it remains cautious about the industry due to the difficult environment and retains its underperform rating. The Magellan share price is trading at $52.79 this afternoon.
Medibank Private Ltd (ASX: MPL)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and lifted the price target on this private health insurer's shares slightly to $2.69. It remains bearish on Medibank due to the tough outlook the industry is facing due to the softer economic backdrop and affordability issues. In addition to this, it notes that the savings it is making from lower utilisation are likely to be returned to policyholders. The Medibank share price is up slightly to $2.77 on Thursday afternoon.
Sonic Healthcare Limited (ASX: SHL)
Analysts at UBS have retained their sell rating and $23.10 price target on this medical diagnostics company's shares. According to the note, the broker expects Sonic Healthcare to generate sizeable revenues from pandemic testing this year. This should offset revenue losses in other areas of the business during the crisis. However, as it is lower margin work, it fears its bottom line will be impacted materially more. The Sonic Healthcare share price is trading at $25.69 this afternoon.
