Here’s why brokers are bearish on these ASX shares…
The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia. –
On Monday 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 that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
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$21.15) price target on this medical device company’s shares. The broker doesn’t expect Fisher & Paykel Healthcare to benefit meaningfully from the recall of the Philips DreamStation. It is expecting ResMed Inc (ASX: RMD) to be the main winner from the development. Outside this, the broker continues to believe its earnings are under pressure from a reduction in COVID-19 hospitalisation rates. As such, it feels its shares are overvalued. The Fisher & Paykel Healthcare share price is fetching $28.50 today.
Platinum Asset Management Ltd (ASX: PTM)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut the price target on this fund manager’s shares to $4.50. This follows the release of Platinum’s latest funds under management (FUM) update. Credit Suisse notes that Platinum has now recorded 30 months of FUM outflows in a row. Unfortunately, the broker doesn’t appear confident this trend will reverse in the near future. This is partly due to Platinum’s exposure to legacy investment platforms. Credit Suisse fears platform disruption and switching could have a big impact on its FUM performance in the future. The Platinum share price is sinking today and down to $4.27.
Wesfarmers Ltd (ASX: WES)
Analysts at Citi have retained their sell rating and $45.00 price target on this conglomerate’s shares. This follows news that Wesfarmers has made a takeover approach for Australian Pharmaceutical Industries (ASX: API). Citi estimates that the acquisition will be 1.7% accretive to earnings per share. And while it doesn’t see meaningful synergies from the deal, it acknowledges that it could be a way to boost its growth in a post-COVID environment. Nevertheless, due to valuation reasons, Citi holds firm with its sell rating. The Wesfarmers share price is fetching $58.55 this afternoon.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.