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 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 UBS, its analysts have retained their sell rating and $70.00 price target on this banking giant's shares. Although the broker acknowledges that CBA deserves to trade at a premium to the rest of the big four, it feels its current valuation is looking very stretched. In light of this, its share could come under pressure if it fails to deliver on the market's high expectations for its half year result. Speaking of which, UBS has pencilled in a 200 cents per share interim dividend and has ruled out a share buyback. The Commonwealth Bank share price is trading at $84.05 today.
Domain Holdings Australia Ltd (ASX: DHG)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted the price target on this property listings company's shares to $2.85. According to the note, although it expects listing volumes to improve in the second half, the broker struggles to see how listings growth will be as strong as the market is predicting. As a result, it appears to believe Domain's shares are overvalued and could come under pressure in the coming months. The Domain share price is trading 0.5% lower at $3.67 today.
SEEK Limited (ASX: SEK)
Analysts at Morgans have downgraded this job listings company's shares to a reduce rating and cut the price target on them to $19.25. According to the note, the broker points out that SEEK has meaningful exposure to the Asian jobs market. Morgans appears concerned that if the coronavirus sticks around for longer than expected, it could have a very negative impact on its Asian business and ultimately its earnings. It has downgraded its forecasts to reflect this. The SEEK share price is changing hands at $22.11 on Thursday.
