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 brokers and been given the coveted buy rating.
The three shares listed below have all fallen out of favour and been given the unwanted sell rating this week. Here's why:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $62.50 price target on this banking giant's shares following its half year results release on Wednesday. Morgan Stanley appeared disappointed with Commonwealth Bank's cash profit result, which fell 3.5% short of the broker's expectations. As such, the broker saw nothing in the result to indicate that the bank's shares deserve their recent re-rating.
Evolution Mining Ltd (ASX: EVN)
Another note out of Morgan Stanley reveals that its analysts have downgraded this gold miner's shares to an underweight rating with a slightly higher price target of $2.90. According to the note, the broker made the move largely on the back of its disappointing second quarter performance and a recent rise in its share price. While it sees the company as one of the highest quality gold miners in Australia, it feels the recent share price spike means its shares are overvalued now.
Insurance Australia Group Ltd (ASX: IAG)
Analysts at Macquarie have retained their underperform rating and $6.85 price target on this insurance giant's shares following its half year results. According to the note, the broker felt IAG delivered a mixed half year result. And although management maintained its full year margin guidance, it was surprised to see no mention of recent inclement weather. Macquarie estimates that recent storms and floods could cost the insurer as much as $100 million.
