Yesterday I looked at three ASX shares 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:
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Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Macquarie, its analysts have retained their underperform rating but lifted their price target on this pizza chain operator's shares to $113.00. This follows the release of a full year result that came in a touch ahead of the broker's expectations. However, due to the sky high multiples its shares trade on, the broker doesn't see enough value in them to have a more positive rating. The Domino's share price is trading at $140.95 on Thursday.
Magellan Financial Group Ltd (ASX: MFG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this fund manager's shares to $46.07. Goldman notes that Magellan delivered a full year result that fell 4% short of its estimates. Unfortunately, it feels that earnings risks remain skewed to the downside and sees few near term catalysts that could prompt a re-rate. The Magellan share price is fetching $45.23 today.
Pro Medicus Limited (ASX: PME)
Analysts at Morgans have retained their reduce rating but lifted their price target on this healthcare technology company's shares to $54.49. According to the note, Pro Medicus' revenue missed Morgans' estimates by 7%. Though, a pleasant surprise was a greater than expected increase in its EBITDA margin. The improvement was twice as great as Morgans was anticipating. However, this isn't enough for a more positive rating. Morgans believes the company's short-term earnings growth is fully priced in now. The Pro Medicus share price is trading at $64.88 today.
