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:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and $65.00 price target on this banking giant's shares. The broker expects Commonwealth Bank to deliver cash earnings from continued operations of $7,815 million in FY 2020. This will be an 8% decline on the prior corresponding period. The broker is also forecasting a 100 cents per share fully franked final dividend, down 56.7% on last year's final dividend. In light of this, it believes its shares are overvalued at the current level. The Commonwealth Bank share price is trading at $73.21 this afternoon.
Netwealth Group Ltd (ASX: NWL)
Analysts at Ord Minnett have downgraded this investment platform provider's shares to a sell rating with an improved price target of $9.55. Although the broker notes that its performance during the pandemic has been positive, it isn't enough to stop it from downgrading its shares. It believes Netwealth shares are overvalued at the current level and sees a lot more value in rival Hub24 Ltd (ASX: HUB). The Netwealth share price is changing hands for $11.52 on Tuesday.
Rio Tinto Limited (ASX: RIO)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $86.00 price target on this morning giant's shares. Although the broker acknowledges that Rio Tinto had a very strong second quarter, it has concerns over iron ore prices in the near term. It suspects that softer seasonal demand and a recovery in Brazilian shipments could put pressure on the price of the steel making ingredient. The Rio Tinto share price is trading at $105.49 this afternoon.
