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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Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
According to a note out of UBS, its analysts have retained their sell rating and NZ$22.65 (A$21.50) price target on this medical device company's shares. UBS was pleased to see the company release the Evora Full sleep apnoea mask. It notes that this new design is in line with current industry trends. However, it isn't enough for a change of rating. UBS continues to believe its shares are overvalued at the current level. The Fisher & Paykel Healthcare share price is trading at $28.77 today.
Magellan Financial Group Ltd (ASX: MFG)
Another note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this fund manager's shares to $29.00. This follows the release of Magellan's latest funds under management update, which revealed further fund outflows. The broker believes this is being driven by the poor performance of its flagship Global Fund. Unfortunately, the broker suspects that there could be further outflows to come. Particularly on the retail side due to its underperformance and high fees. The Magellan share price is fetching $33.65 today.
Mineral Resources Limited (ASX: MIN)
Analysts at Morgan Stanley have retained their underweight rating and $41.00 price target on this mining and mining services company's shares. While the broker notes that the company is working towards restarting its Wodgina lithium operation, it doesn't expect this to happen until the second half of next year. For now, the broker believes the company's shares are overvalued. Particularly given its exposure to low grade iron ore. The Mineral Resources share price is trading at $43.55 today.
