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:
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Macquarie Group Ltd (ASX: MQG)
According to a note out of Citi, its analysts have retained their sell rating and $125.00 price target on this investment bank's shares. Citi appears to believe that Macquarie's shares are expensive at the current level. Particularly given its belief that the company will be forced to forecast a decline in earnings in FY 2022. This is due to a number of events that have occurred in FY 2021 that are highly unlikely to repeat again next year. The Macquarie share price is trading at $154.50 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Goldman Sachs have retained their sell rating and $45.56 price target on this fund manager's shares. This follows the release of Magellan's latest funds under management (FUM) update for the month of March. According to the note, the broker continues to see Magellan as expensive in light of the recent deterioration in its performance and the associated risks to revenues. The Magellan share price is fetching $48.60 on Tuesday afternoon.
Platinum Asset Management Ltd (ASX: PTM)
A note out of Credit Suisse reveals that its analysts have downgraded this fund manager's shares to an underperform rating with a $4.65 price target. This follows the release of its FUM update after the market close on Friday. Credit Suisse notes that Platinum reported a 1.4% decline in FUM during the month. It appears concerned that this trend could continue, especially given disruption in the platform industry, which it feels could have a major impact on Platinum's performance. The Platinum share price is trading at $4.84 today.
