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 the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this banking giant's shares to $65.00. This follows the release of Commonwealth Bank's first quarter update. While Macquarie found things to like in the update, it has concerns over the impact of low interest rates and competitive pressures on its future performance. In light of this, it doesn't believe its shares offer value for money at the current level. The Commonwealth Bank share price is trading at $72.99 this afternoon.
Computershare Limited (ASX: CPU)
Analysts at Citi have retained their sell rating and $12.00 price target on this share registry company's shares following the release of its annual general meeting update. Although the broker acknowledges that Computershare has had a better than expected start to FY 2021, it isn't overly convinced that its outperformance will continue in the second half. Furthermore, it doesn't believe the company will benefit as greatly from US delinquent mortgage servicing in the coming years. This led to the broker downgrading its future earnings estimates accordingly. The Computershare share price is changing hands for $13.78 on Thursday.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another note out of the Macquarie equities desk reveals that its analysts have downgraded this pizza chain operator's shares to an underperform rating with a reduced price target of $72.10. The broker made the move in response to the prospect of an effective vaccine being released in the near future. It believes this will lead to consumer behaviour returning to normal in 2021, which could bring an end to Domino's elevated sales. The Domino's share price is trading at $78.23 today.
