On Monday I looked at three ASX shares that have been given buy ratings by brokers this week.
Unfortunately, not all shares have been lucky enough to have been given the highly coveted buy rating.
The three shares listed below have all been given sell ratings. Here's why:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of the Macquarie equities desk, its analysts have downgraded this banking giant's shares to an underperform rating with a $69.00 price target. Although the broker believes that the banking sector is attractive on a relative basis due to generous yields and current valuations, it has concerns over the tough trading conditions being faced and its challenging outlook. The Commonwealth Bank of Australia share price is currently trading at $71.78.
Medibank Private Ltd (ASX: MPL)
A note out of Credit Suisse reveals that its analysts have downgraded this private health insurer's shares to an underperform rating with a price target of $2.50. According to the note, the broker believes the uncertainty around the company's earnings for FY 2020 and FY 2021 is likely to mean that any upside for its shares is limited. In addition to this, the broker thinks that Medibank's shares are looking expensive given the slowdown in its profit growth. The Medibank share price is currently trading at $2.70.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Credit Suisse have also retained their underperform rating and $54.80 price target on this private hospital operator's shares following its recent investor briefings. According to the note, the broker believes that things are improving for Ramsay in Europe and that its UK strategy is positive. However, the broker has concerns over an excess in overnight capacity in the latter market. In addition to this, Credit Suisse has previously noted that conditions in the key Australia market are subdued and there are risks on the horizon from the upcoming election and key health insurance contract renegotiations. The Ramsay share price last traded at $64.91.
