On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here's why they are bearish on them:
ASX Ltd (ASX: ASX)
According to a note out of Morgans, its analysts have retained their reduce rating but lifted their price target on this stock exchange operator's shares to $73.05. This follows the release of the company's activity update for March, which Morgans considered to be relatively soft. In light of this, although it acknowledges ASX as a stable and quality franchise, the broker believes its shares are expensive and suggests investors wait for a better entry point. The ASX share price is trading at $82.15 on Friday.
IGO Ltd (ASX: IGO)
A note out of UBS reveals that its analysts have initiated coverage on this battery metals miner's shares with a sell rating and $12.65 price target. While UBS highlights that IGO provides investors with exposure to an attractive area of the resources sector and is bullish on lithium and nickel, it isn't a fan of the company's current valuation. It also fears that current lithium and nickel prices are unsustainable. The IGO share price is fetching $13.67 today.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Macquarie have retained their underperform rating but lifted their price target on this fund manager's shares to $13.25. This follows the release of the company's latest funds under management update. While Macquarie was pleased to see Magellan's fund outflows slow, it doesn't expect the outflows to stop any time soon. Particularly given the poor investment performance of its funds. The Magellan share price is trading at $17.14 on Friday.
