Yesterday we 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 that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
ASX Ltd (ASX: ASX)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $73.70 price target on this stock exchange operator's shares. This follows the release of the company's monthly activity report, which reveals that futures volumes are still down materially over the prior corresponding period. In addition, the broker sees risks with the CEO leaving during the CHESS replacement. The ASX share price ended the day at $79.39 on Tuesday.
Blackmores Limited (ASX: BKL)
A note out of Goldman Sachs reveals that its analysts have downgraded this health supplements company's shares to a sell rating with a $75.20 price target. Goldman was pleased with Blackmores' performance during the first half but has concerns over its profit outlook. This is due to the company spending heavily to rebuild its brand in existing markets and launch into new markets. The Blackmores share price has now tumbled below this price target and was fetching $74.34 at Tuesday's close.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at UBS have retained their sell rating and cut their price target on this struggling fund manager's shares to $13.50. According to the note, the broker believes that Magellan's shares could still fall further due to fund outflow risks. This is particularly the case for its infrastructure funds, which the broker sees as an emerging risk. This follows a recent underperformance from this side of the business. The Magellan share price was trading at $14.22 on Tuesday afternoon.
