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:
Air New Zealand Limited (ASX: AIZ)
According to a note out of UBS, its analysts have retained their sell rating but lifted the price target on this airline operator’s shares to 60 New Zealand cents (55.5 Australian cents). The broker now expects Air New Zealand’s cash burn to be less severe than previously expected. However, the full extent of its cash burn will depend on how quickly travel markets return to normal. In light of this, it sees no reason to change its rating at this stage. The Air New Zealand share price is trading at $1.16.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Goldman Sachs reveals that its analysts have reiterated their sell rating and $56.40 price target on this banking giant’s shares. Goldman remains bearish on Commonwealth Bank due to its strong deposit franchise. It believes this leaves it more vulnerable to the medium term impact of lower rates. In addition to this, it notes that the bank has the highest exposure to more competitive mortgages and its CET1 ratio is softening. Combined, it doesn’t believe the bank deserves to trade at such a premium to its peers. Commonwealth Bank’s shares are changing hands at $60.30 today.
National Storage REIT (ASX: NSR)
Another note out of Goldman Sachs reveals that its analysts have put a sell rating and $1.56 price target on this storage provider’s shares. The broker believes that trading conditions will remain challenging due to economic uncertainty. Especially given the prospect of higher unemployment. Goldman expects National Storage to post a 15% decline in underlying earnings in FY 2020 and then a 2% decline in FY 2021, before rebounding 9% in FY 2022. National Storage’s shares are trading at $1.71.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.