On Thursday I had a look at a few of shares which brokers had given buy ratings to this week.
Today I thought I would take a look at the unfortunate shares which haven't found favour with brokers and have instead been given sell ratings.
Here are two in particular that caught my eye:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $72 price target on the shares of Australia's largest bank. Despite the broker seeing the sale of its life insurance business as a positive, it wasn't enough to change its mind that Commonwealth Bank's shares are more likely to go lower than higher from here.
Whilst I think it would be a great buying opportunity if its shares fell to $72, I don't think they'll drop as low as that any time soon. In my opinion Commonwealth Bank is a buy, but not my first pick in the industry.
NIB Holdings Limited (ASX: NHF)
Analysts at Citi have retained their sell rating but increased the price target on the health insurance provider's shares to $5.25 following the acquisition of GU Health. According to the note, Citi believes that NIB's shares are still expensive, even after factoring in the boost that the acquisition will provide.
While I think that this is a good acquisition, I agree with Citi that NIB's shares are expensive at 23x trailing earnings. I believe investors can find better value elsewhere in the healthcare sector with shares such as Ramsay Health Care Limited (ASX: RHC).
