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 these ASX shares:
AGL Energy Limited (ASX: AGL)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut the price target on this energy company’s shares to $11.10. The broker believes AGL Energy will have to battle with a sizeable decline in wholesale energy prices in the future. In light of this, it sees significant downside to its earnings in the coming years and has downgraded its estimates to reflect this. The AGL Energy share price is changing hands for $11.97 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $52.52 price target on this fund manager’s shares. The broker believes that Magellan is not well-positioned for an environment of unified democratic control of government in the US. It also notes that its funds under management fell 1.6% in December due to negative investment returns of 2.1% and its performance fees fell short of expectations. The Magellan share price is under pressure today and has now fallen below this target to $49.55.
QBE Insurance Group Ltd (ASX: QBE)
Analysts at Macquarie have retained their underperform rating and cut the price target on this insurance giant’s shares to $7.70. The broker has concerns over the company operating without a permanent CEO in these tough times and sees risks ahead in FY 2021 because of this. Furthermore, due to the large loss that QBE is expecting in FY 2020, Macquarie is forecasting a significant dividend cut. The QBE share price is trading at $8.51 today.