Yesterday I looked at three ASX shares that 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 200 shares:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, it has retained its sell rating and $62.65 price target on this banking giant’s shares. The broker expects Commonwealth Bank’s strong deposit franchise to leave it more vulnerable to the medium term impact of lower rates. In addition to this, it notes that the bank has the highest exposure to more competitive mortgages relative to its peers. Overall, it doesn’t believe its shares deserve to trade at such a premium to the rest of the big four. The Commonwealth Bank share price is trading notably higher than this price target at $71.84.
GPT Group (ASX: GPT)
Analysts at Morgan Stanley have retained their underweight rating and $4.20 price target on this property company’s shares. According to the note, the broker was not surprised to see GPT reduce the valuations of its retail portfolio by a total of 8.8% or $476.7 million. But the devaluations may not stop there. It notes that the company plans to have all its properties independently valued at the end of June. GPT’s shares are changing hands at $4.46 this afternoon.
Wesfarmers Ltd (ASX: WES)
A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this conglomerate’s shares to $38.20. According to the note, the broker was pleased with the strong sales growth achieved by Bunnings and Officeworks so far in the second half. However, it notes that this sales growth is coming at a cost. As such, the company is unlikely to benefit as greatly from the sales surge as you might think. Furthermore, Citi is expecting its sales growth to moderate as restrictions ease. As a result, it sees no reason to change its rating at this point. The Wesfarmers share price is up over 4% to $43.57 today.
Those may be the shares to sell, but these are the shares that analysts have given buy ratings to…
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More reading
- Are Aussies still withdrawing cash like crazy?
- How to be like Warren Buffett and not lose money investing in ASX 200 shares
- Afterpay share price overbought says analyst
- Why the CBA share price is lagging its big four cohorts
- 3 top ASX shares for growth, income, and value investors to buy today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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