On Thursday, 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 Morgan Stanley, its analysts have retained their underweight rating and $74.00 price target on this stock exchange operator’s shares. This follows the announcement that its CHESS replacement project has been delayed from its April 2023 go-live target date. While the broker was expecting such a delay, it warned that this could mean operating costs will be higher for longer. It also sees risks for write downs on its prior investment expenditure if it has to switch approach. The ASX share price is trading at $81.92 on Friday.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Macquarie reveals that its analysts have retained their underperform rating and $90.00 price target on this banking giant’s shares. Macquarie suspects that CBA could struggle to outperform its rivals in respect to revenue growth in the coming years due partly to sustained mortgage competition. In light of this, it feels the company’s shares don’t warrant their premium valuation. The CBA share price is fetching $101.98 this afternoon.
Insurance Australia Group Ltd (ASX: IAG)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $4.05 price target on this insurance company’s shares. While Morgan Stanley sees rising interest rates as a positive for IAG, it appears to believe it is too soon to get excited. Especially given how inclement weather could lead to higher claims. The IAG share price is trading at $4.62 today.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
- Inflation to ‘peak shortly’: CBA boss says markets have priced in too many rate rises
- What is the dividend yield on IAG shares in May?
- Broker says the CBA share price is expensive and a sell
- 5 things to watch on the ASX 200 on Friday
- Why CBA, Incannex, Judo Capital, and Orica shares are rising
Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Scott Phillips.
from The Motley Fool Australia https://ift.tt/otKeP54