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Top brokers name 3 ASX shares to sell today

On Thursday I looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with them right now.

Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on them:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating and $71.00 price target on this banking giant’s shares. Macquarie remains bearish on CBA despite APRA’s latest update on capital requirements. This is due to its concern that the major banks will have to increase their capital positions to satisfy the requirements of the Reserve Bank of New Zealand. In addition to this, the broker expects competition for mortgages to become fierce. The CBA share price is down 1% to $79.59 this afternoon.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Goldman Sachs have retained their sell rating and $13.70 price target on this wine company’s shares after looking through the latest industry data. According to note, the date reveals that the trends across the wine company’s key markets remain generally subdued. The broker has also previously spoken about concerns over the increasing risk on its working capital/cash conversion ratio and its growing reliance on new brands and regional products for earnings growth from FY 2020 onwards. The Treasury Wine Estates share price has fallen 1% to $15.07 today.

Wesfarmers Ltd (ASX: WES)

A note out of Citi reveals that its analysts have retained their sell rating but increased the price target on this conglomerate’s shares ever so slightly to $29.20 following its trading update on Thursday. That update revealed that both its Kmart and Target businesses have underperformed expectations in the second half due to tough trading conditions. Citi notes that the company did not benefit from a post-election rebound in sales and appears concerned with its increasing wage costs. The Wesfarmers share price is down over 1% to $35.83 on Friday afternoon.

CBA may have been rated as a sell, but this bank share has just been given a buy rating.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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