One of the best performers on the Australian share market this year has been the South32 Ltd (ASX: S32) share price.
Since the turn of the year the diversified miner's shares have risen over 29%.
But as far as one of Australia's leading brokers is concerned, this good run could be coming to an end.
A research note out of UBS this morning reveals that its analysts have downgraded South32's shares from a buy rating to a neutral rating with a $3.25 price target.
According to the note, the broker believes that its shares have got a little ahead of themselves and are at risk of declines should commodity prices go through a correction.
Furthermore, the broker has concerns over its Illawarra and Cannington operations.
Should you sell?
There's no doubt that a correction in commodity prices is certainly a key risk to consider, especially given the limited upside potential I believe its shares have after this strong run.
This could make it worth considering taking profit now, especially when you factor in the attractive valuations of other shares in the sector.
At this point in time I see a more compelling risk/reward on offer with Santos Ltd (ASX: STO) and BHP Billiton Limited (ASX: BHP) shares.
Incidentally, this morning UBS retained its buy rating and raised its price target on BHP Billiton's shares to $30.00. This implies potential upside of over 13% for its shares over the next 12 months.