On Monday 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:
Adelaide Brighton Ltd (ASX: ABC)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut the price target on this building materials company's shares to $2.10. The broker appears concerned that the majority of its revenue streams will struggle for growth in the near term and has downgraded its earnings estimates to reflect this. In addition to this, it sees other options in the sector that it feels would be better to own when the economy recovers. The Adelaide Brighton share price is trading at $2.39 today.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $55.07 price target on this banking giant's shares. According to the note, the broker has concerns that its strong deposit franchise leaves it more vulnerable to lower rates. In addition to this, while it believes that Commonwealth Bank's portfolio is more defensive than its rivals, it feels this defensiveness is being overstated by current valuations. The Commonwealth Bank share price is trading 1% lower at $58.36 today.
Newcrest Mining Limited (ASX: NCM)
According to a note out of the Macquarie equities desk, its analysts have downgraded this gold miner's shares to an underperform rating with a $23.00 price target. The broker made the move after revising its outlook for exchange rates on the belief that the U.S. Federal Reserve will take aggressive action to the coronavirus pandemic. The Newcrest share price is trading at $27.53 this afternoon.
