Analysts rate CBA and these popular ASX shares as sells

Knowing which ASX shares to avoid can be just as important as knowing which ones to buy if you want to maximise your returns.

With that in mind, it could be worth hearing what analysts are saying about the popular ASX shares listed below before you buy them.

Here are three popular ASX shares that have been named as sells, courtesy of The Bull:

Commonwealth Bank of Australia (ASX: CBA)

The team at Medallion Financial Group thinks that Australia’s largest bank is still overvalued despite recent weakness. It highlights its lofty price to earnings ratio, modest dividend yield, and premium valuation as reasons to be cautious. It said:

While the CBA remains a solid business over the long term, the share price looks expensive at current levels. Recently trading on a price/earnings ratio of about 25 times and a modest dividend yield of about 3.15 per cent, its valuation sits well above global peers. Also, the company recently suffered its worst sell-off in four years following the release of first quarter results in fiscal year 2026, which flagged higher operating costs, a weaker net interest margin (NIM) and a lower-than-expected common equity tier 1 capital ratio of 11.8 per cent, which is still above the Australia Prudential Regulation Authority minimum of 10.25 per cent.

DroneShield Ltd (ASX: DRO)

Over at Red Leaf Securities, its analysts aren’t buying this counter drone technology company’s shares despite their crash last month. Red Lead has concerns that its shares could remain under pressure in the near term. It explains:

The company provides artificial intelligence based platforms for protection against advanced threats, such as drones and autonomous systems. The stock plunged after disclosures to the ASX revealed DRO directors had been selling their holdings. The company announced that November contracts were inadvertently marked as new ones rather than revised contracts due to an administrative error. In our view, such an error raises governance and confidence concerns among investors. The shares have fallen from $6.60 on October 9 to trade at $1.997 on November 27. We believe the shares will remain under pressure.

Monash IVF Group Ltd (ASX: MVF)

Finally, Red Leaf Securities also rates this fertility treatment company as sell.

It thinks that investors should be taking profit following a strong gain which was driven by a takeover proposal, which has since been rejected. It said:

MVF is a fertility services company. The company recently rejected a takeover offer of $312 million from a consortium comprising Genesis Capital at 80 cents a share. The Monash board unanimously determined that the takeover proposal materially undervalued Monash and was not in the best interests of company shareholders as a whole. Monash shares soared on news of the takeover proposal and closed at 88 cents on November 24. Prior to the proposal, Monash shares had been struggling this year after two embryo mix ups at its clinics in Melbourne and Brisbane negatively impacted its reputation. We suggest investors take advantage of the premium built into the takeover proposal and sell some stock. The shares were trading at 85.7 cents on November 27.

The post Analysts rate CBA and these popular ASX shares as sells appeared first on The Motley Fool Australia.

More reading

• 5 most-traded Australian shares last week
• ANZ shares are lagging the other big banks: Here’s why
• Are CBA shares a good buy amid rising interest rates?
• Why does the CBA share price keep falling? – Expert
• The 4 worst performing ASX 200 stocks to hold in November unmasked

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 positions in and has recommended DroneShield. 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.