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 these ASX 200 shares:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating and $25.00 price target on this payments company's shares. It believes that Afterpay's $800 million capital raising demonstrates the capital intensity of its business model. It feels this is something that the market is underestimating. In addition to this, the broker continues to believe that the company's shares are overvalued at the current level. The Afterpay share price last closed at $68.00.
ASX Ltd (ASX: ASX)
Analysts at Citi have retained their sell rating and cut the price target on this stock exchange operator's shares to $65.00. Although the broker is expecting ASX Ltd to have a strong second half, it appears concerned that FY 2021 will be a tough year. Especially given weakness in the derivatives market. In light of this, it continues to believe its shares are fully valued at the current level. The ASX Ltd share price is trading at $85.82 this afternoon.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted the price target on this banking giant's shares to $63.50. According to the note, the broker expects the Commonwealth Bank to be forced to almost halve its final dividend down to $1.30 per share. Looking ahead, its analysts believe the bank needs to adopt a major change of strategy over the medium term to drive growth. The CBA share price is trading at $71.71 at the time of writing.
