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:
Blackmores Limited (ASX: BKL)
According to a note out of Citi, its analysts have retained their sell rating and $60.50 price target on this health supplements company's shares. While the broker believes that Blackmores' earnings are likely to have bottomed in FY 2020, it is waiting for evidence of this before becoming more positive on the company. Especially given the difficulties it has been facing in the key China market. Citi appears concerned this could stifle its top line growth. The Blackmores share price is trading at $71.95 today.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this banking giant's shares to $78.50. According to the note, the broker is expecting the banks to outperform the market this year. However, it sees more value in other banks and feels Commonwealth Bank's shares have now peaked following their recovery over the last three months. In light of this, the broker is sticking to its underweight rating for now. The CBA share price is fetching $85.23 this afternoon.
Scentre Group (ASX: SCG)
Analysts at UBS have downgraded this shopping centre operator's shares to a sell rating with an improved price target of $2.58. According to the note, the broker made the move on valuation grounds following a strong rise in the Scentre share price since the start of November. UBS believes that the retail re-opening trade has now played out and its shares have peaked. The broker also has concerns over occupancy rates due to COVID-19. The Scentre share price is trading at $2.82 on Thursday.
