On Wednesday 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 ASX shares that have just been given sell ratings by brokers are listed below.
Here’s why these brokers are bearish on them:
Champion Iron Ltd (ASX: CIA)
According to a note out of Citi, its analysts have downgraded this iron ore producer’s shares to a sell rating but lifted the price target on them to $4.40. While the broker expects Champion Iron to benefit greatly from strong iron ore prices and has upgraded its earnings forecasts materially to reflect this, it isn’t a fan of its current valuation. Citi believes the strong gain in the Champion Iron share price has left its shares overvalued, hence the downgrade. The Champion Iron share price is fetching $5.12 this afternoon.
Commonwealth Bank of Australia (ASX: CBA)
Analysts at Morgan Stanley have retained their underweight rating and $68.50 price target on this banking giant’s shares. This follows news that Commonwealth Bank has been given Chinese regulatory approval to sell its stake in BoCommLife to MS&AD Insurance Group. While this sale will give its CET1 ratio a nice boost, it doesn’t expect it to lead to a share buyback anytime soon. In light of this and its lofty valuation, the broker isn’t in a rush to change its rating. The CBA share price is trading at $83.00 on Thursday.
Scentre Group (ASX: SCG)
A note out of Macquarie reveals that its analysts have downgraded this shopping centre operator’s shares to an underperform rating but lifted the price target on them to $2.68. Macquarie believes that the percentage of retail sales made online will double from pre-pandemic levels by 2025. And while Scentre has some high quality assets, it believes this could weigh on its performance over the medium term and stifle its growth. The Scentre share price is changing hands for $2.83 this afternoon.
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More reading
- The CBA share price ticks green for year-to-date returns
- ASX 200 up again on Wednesday
- Citigroup downgrades these ASX mining stocks after a big rally
- ASX 200 up 0.7%: CBA update, IGO enters lithium market, Healius jumps
- Commonwealth Bank (ASX:CBA) share price higher on divestment update
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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