Top brokers name 3 ASX shares to sell today

Brokers are bearish on these ASX shares…

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Yesterday 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:

AGL Energy Limited (ASX: AGL)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and reduced the price target on this energy company’s shares to $6.70. The broker remains bearish on AGL and suspects that there will be further consensus downgrades to earnings estimates for the coming years in the near future. It also has a few concerns with its demerger plans. The AGL share price is trading at $8.16 this afternoon.


A note out of Citi reveals that its analysts have downgraded this stock exchange operator’s shares to a sell rating with a slightly improved price target of $71.10. It wasn’t surprised to see volumes for both cash equities and futures fall markedly in the second half compared to the prior corresponding period. And while the broker is expecting some details on its medium term growth plans with its full year results, whether this will be sufficient to materially alter forecasts is questionable and perhaps unlikely, it says. In light of this, it feels its shares are expensive again. The ASX share price is fetching $76.48 today.

Magellan Financial Group Ltd (ASX: MFG)

Analysts at Morgan Stanley have retained their underweight rating and $39.60 price target on this fund manager’s shares. This follows the company’s quarterly funds under management update which revealed sizeable fund outflows for the June quarter. The broker believes the current Magellan share price doesn’t reflect the risks of further funds outflows in the quarters that follow. As such, it feels its shares are expensive at the current level. The Magellan share price is trading at $51.57 this afternoon.

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Motley Fool contributor 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 no position in any of the stocks mentioned. 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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