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:
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Evolution Mining Ltd (ASX: EVN)
According to a note out of Macquarie, its analysts have downgraded this gold miner's shares to an underperform rating with a $4.30 price target. Although Macquarie has increased its gold price forecasts, it isn't enough to stop the downgrade to underperform. The broker made the move on valuation grounds following a decent rise by the Evolution share price since the end of January. The Evolution share price is currently trading at $4.36.
Magellan Financial Group Ltd (ASX: MFG)
Another note out of Macquarie reveals that its analysts have retained their underperform rating and slashed their price target on this fund manager's shares by over a third to $12.40. This follows the release of another funds under management update which revealed that it continues to experience heavy fund outflows. Macquarie sees little scope for its shares to re-rate given its belief that material outflows are likely to persist for several quarters. The broker is now forecasting second half fund outflows of $28.5 billion. The Magellan share price is fetching $13.92 today.
Rio Tinto Limited (ASX: RIO)
Analysts at UBS have retained their sell rating and $90.00 price target on this mining giant's shares. While the broker believes the acquisition of the remaining 49% stake in Turquoise Hill will be a positive for the operation of Oyu Tolgoi operation, it isn't enough to a change of rating. It continues to see the risk/reward for iron ore as skewed to the downside. The Rio Tinto share price is trading at $106.91 this afternoon.
