On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week.
On the flip side, today we look at a few shares that have just been given sell ratings by brokers. Here’s why they are bearish on these ASX shares:
Charter Hall Retail REIT (ASX: CQR)
According to a note out of Morgan Stanley, its analysts have downgraded this REIT’s shares to an underweight rating with a $4.05 price target. The broker made the move on the belief that smaller Australian retail REITs with regional exposure could underperform in the next 12 to 18 months. This is based on the normalisation of trade post-COVID and the softening of regional migration growth as people return to urban areas. The Charter Hall Retail REIT share price is trading at $4.29 on Thursday.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Citi reveals that its analysts have retained their sell rating and $94.50 price target on this banking giant’s shares. The broker believes CBA’s shares are fully value given slowing growth in mortgage lending and strong competition. Citi also believes the bank’s expenses will increase quicker than income and notes that its weak position in business banking means it will miss out on stronger trading conditions at that side of banking. The CBA share price is trading at $96.03 today.
TechnologyOne Ltd (ASX: TNE)
Analysts at Macquarie have downgraded this enterprise software company’s shares to an underperform rating but with an improved price target of $11.00. This follows the release of the company’s full year results. While the broker has increased its earnings estimates for the coming years, it isn’t enough for a more positive rating. Macquarie believes TechnologyOne’s shares are expensive in comparison to peers. The TechnologyOne share price is fetching $11.92 on Thursday.
Should you invest $1,000 in CBA right now?
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- Macquarie (ASX:MQG) is now a big four bank
- Why Bapcor, Mayne Pharma, Race Oncology, and TechnologyOne shares are sinking
- Why is the Technology One (ASX:TNE) share price tumbling 9% today?
- Is the TechnologyOne (ASX:TNE) share price a buy after its results?
- Is the CBA (ASX:CBA) share price premium relative to other big banks justified?
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 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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