On Monday I looked at three ASX shares that have been given buy ratings by brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all been given sell ratings. Here's why:
AGL Energy Limited (ASX: AGL)
According to a note out of Credit Suisse, its analysts have retained their sell rating but lifted the price target on the energy company's shares to $18.30. The broker believes that AGL Energy's shares are overvalued at the current level and do not reflect the pressure to earnings it faces from a reduction in wholesale energy prices and cheap additional supply from new wind generation. At present the AGL Energy share price is trading at $21.52.
Commonwealth Bank of Australia (ASX: CBA)
Analysts at Morgan Stanley have retained their underweight rating and trimmed the price target on the banking giant's shares to $62.00. According to the note, the broker believes the bank is facing an earnings downgrade cycle due to the housing market downturn, increased competition, weaker business lending, and potential cash rate cuts. Furthermore, with economic growth looking uncertain, the broker feels investors ought to stay clear of CBA's shares at these levels. At present the CBA share price is trading 0.8% lower at $70.08
South32 Ltd (ASX: S32)
A note out of Goldman Sachs reveals that its analysts have downgraded this mining giant's shares to a sell rating with a $3.20 price target. According to the note, the broker has made the move due to its belief that South32 may have had a weak March quarter. Furthermore, the broker feels its shares are overvalued following a solid share price gain in 2019. Prior to today the South32 share price was up 17% year to date. The diversified miner's shares are currently trading almost 3% lower at $3.77.
