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:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underperform rating and cut the price target on this banking giant’s shares to $62.00. This follows the release of a full year result which fell a touch short of Morgan Stanley’s expectations. And while it was pleasantly surprised by its credit quality, it remains concerned that this could deteriorate. In addition to this, the broker suspects that APRA could continue to place restrictions on dividend payments in 2021. In light of this, it continues to believe its shares are overvalued at the current level. The CBA share price is trading at $72.45 this afternoon.
Computershare Limited (ASX: CPU)
A note out of Citi reveals that its analysts have retained their sell rating and $12.00 price target on this share registry company’s shares following its results release. Although its result was in line with expectations, the broker believes its outlook remains weak due to a number of headwinds in the UK and United States. As a result, it holds firm with its sell rating. The Computershare share price is changing hands for $13.10 on Thursday.
Transurban Group (ASX: TCL)
Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this toll road operator’s shares to $12.60. According to the note, Transurban’s full year result fell short of its forecasts due to weak toll prices and soft traffic volumes. Unfortunately for shareholders, the broker expects it to be a few years until Transurban’s dividend recovers to previous levels. Because of this and the tough trading conditions it is facing, it appears to believe its shares are overvalued at the current level. The Transurban share price is trading at $13.41 this afternoon.
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More reading
- Telstra just announced its dividend! Are Telstra shares now a buy?
- Why AGL, Breville, CBA, & Telstra shares are dropping lower today
- ASX 200 drifts 0.1% lower, CBA reports solid FY20 result
- How did the CBA FY 2020 result compare with expectations?
- Fund managers have been buying these ASX shares
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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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