On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Credit Suisse, its analysts have downgraded this banking giant's shares to an underperform rating with a $77.60 price target. The broker made the move largely on valuation grounds, noting that its shares are trading a lot higher than its current price target. In addition to this, it has downgraded its earnings in response to higher than expected insurance claims. The Commonwealth Bank share price is down slightly at $84.44 on Tuesday.
IOOF Holdings Limited (ASX: IFL)
Analysts at UBS have retained their sell rating and cut the price target on this financial services company's shares slightly to $6.80. According to the note, IOOF's first half update was weaker than the broker was expecting. And whilst it acknowledges that FY 2020's financial results were going to be messy due to acquisitions and divestments, its core earnings are notably lower than its estimates. The IOOF share price has dropped 2% to $7.55 on Tuesday afternoon.
ResMed Inc. (ASX: RMD)
A note out of the Macquarie equities desk reveals that its analysts have held firm with their underperform rating and $17.00 price target on this sleep treatment specialist's shares. According to the note, although ResMed delivered a second quarter result that was a touch ahead of its expectations, it wasn't enough to change its view. The broker remains concerned with risks relating to reimbursement rates and regulatory changes. It also notes that competition is increasing in the industry. The ResMed share price is changing hands at $24.61 this afternoon.
