Top brokers name 3 ASX shares to sell today

The bears are saying investors shouldn’t be buying these shares…

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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 shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Magellan Financial Group Ltd (ASX: MFG)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $47.97 price target on this fund manager’s shares. This follows the launch of Magellan’s FuturePay equity income product, which will pay a fixed distribution benchmarked to inflation. While the product may be appealing for advisors, Goldman doesn’t believe it is for investors. As such, it isn’t adjusting its earnings forecasts to account for its launch until it can better gauge demand. In light of this, and with its performance still skewing earnings risks to the downside, it has retained its sell rating. The Magellan share price is trading at $48.86 today.

Prime Media Group Limited (ASX: PRT)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on the regional television focused media company’s shares to 9 cents. The broker believes that regional TV advertising is improving after the recent downturn. However, while this may be positive, Morgan Stanley continues to believe that its medium to long term earnings are under threat due to a structural decline in the regional advertising market. The Prime Media share price is trading at 23 cents this afternoon.

Virtus Health Ltd (ASX: VRT)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $5.05 price target on this fertility treatment company’s shares. The broker notes that IVF cycles are growing strongly versus both 2020 and 2019 levels and are expected to continue doing so during the second half. However, due to its stretched valuation, Morgan Stanley believes there are better options for investors in the industry. The Virtus Health share price is fetching $6.23 on Thursday.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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