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 ASX 200 shares that have just been given sell ratings by brokers are listed below.
Here's why these brokers are bearish on them:
IGO Ltd (ASX: IGO)
According to a note out of Ord Minnett, its analysts have resumed coverage on this nickel miner's shares with a sell rating and $3.70 price target. The broker made the move largely on valuation grounds. It feels its shares are expensive at this level and could come under significant pressure if its guidance for FY 2021 disappoints. The IGO share price is currently trading notably higher than this price target at $4.92.
Magellan Financial Group Ltd (ASX: MFG)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $47.00 price target on this fund manager's shares. It continues to have a problem with its valuation and notes that its shares are the most expensive under coverage in the sector. And while its funds have performed positively, it doesn't believe this is enough to justify the premium its shares are trading at. Magellan's shares are changing hands for $56.95 this afternoon.
Sonic Healthcare Limited (ASX: SHL)
Analysts at UBS have retained their sell rating and lifted the price target on this healthcare company's shares to $26.75 following its trading update. According to the note, the broker has lifted its forecasts to account for a better than expected second half. Nevertheless, this isn't enough to force a change of rating and UBS continues with its sell rating. Sonic's shares are trading at $30.19 at the time of writing.
