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 ASX shares that have just been given sell ratings by brokers are listed below.
Here's why these brokers are bearish on them:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $63.50 price target on this banking giant's shares. The broker notes that APRA has eased restrictions on dividend payments and will now allow 50% of earnings to be paid out to shareholders this year. It believes this means that Commonwealth Bank will pay a $1.30 per share final dividend later this year. Nevertheless, the broker continues to have issues with its valuation and retains its underweight rating. The Commonwealth Bank share price is trading at $73.13 this afternoon.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of UBS reveals that its analysts have downgraded this pizza chain operator's shares to a sell rating but with an improved price target of $64.00. UBS notes that Domino's has defensive qualities and is positive on its medium term growth prospects. This is thanks partly to its store expansion plans and the shift to online food ordering. However, it believes this is already priced into its shares and has downgraded them on valuation grounds. The Domino's share price is changing hands for $74.19 on Thursday.
Paradigm Biopharmaceuticals Ltd (ASX: PAR)
Analysts at Morgans have downgraded this biopharmaceutical company's shares to a reduce rating with a $1.74 price target. This follows the release of a fourth quarter update which revealed a sharp increase in research and development expenses. In addition to this, the broker has concerns about a number of things behind the scenes. This includes the exit of its chairman and insider selling. In light of this and recent share price gains, it has decided to downgrade its shares. The Paradigm share price is trading at $3.22 this afternoon.
