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:
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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Macquarie, its analysts have retained their underperform rating but lifted the price target on this banking giant's shares to $78.00. Macquarie notes that Commonwealth Bank is still operating in a challenging environment and facing margin and fee pressures. It doesn't feel that this is being factored into its share price, which it believes is looking stretched. The Commonwealth Bank share price is trading at $84.82 today.
Iluka Resources Limited (ASX: ILU)
Analysts at Credit Suisse have downgraded this mineral sands producer's shares to an underperform rating but lifted the price target on them to $5.60. According to the note, the broker made the move following the release of a reasonably mixed quarterly update earlier this week. In light of this update, it feels it is unlikely that Iluka will be paying a dividend with its full year results. The Iluka share price is fetching $6.64 this afternoon.
Orocobre Limited (ASX: ORE)
A note out of Credit Suisse reveals that its analysts have downgraded this lithium miner's shares to an underperform rating with an improved price target of $5.00. While Orocobre was on form during the second quarter, the broker appears concerned by its valuation. It notes that its shares have rallied hard over the last three months amid the strengthening the outlook for lithium demand and prices. The Orocobre share price is trading at $5.66 on Thursday afternoon.
