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:
AGL Energy Limited (ASX: AGL)
According to a note out of UBS, its analysts have retained their sell rating and $10.10 price target on this energy company’s shares. This follows the announcement of its plan to split into two separate businesses. While the broker sees positive in the New AGL business, it suspects that investor appetite for PrimeCo will be low due to its thermal coal assets. UBS appears to be waiting for further clarification on the plans before making any changes to its recommendation. The AGL share price is now trading below this price target at $9.70.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $79.00 price target on this banking giant’s shares. According to the note, the broker believes that Commonwealth Bank’s strong capital position will allow it to undertake a share buyback in FY 2022. However, this isn’t enough for a change of rating. The broker continues to believe that its shares are expensive and sees more value in other banks. The CBA share price is fetching $85.86 on Thursday.
Virtus Health Ltd (ASX: VRT)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $5.05 price target on this fertility treatment company’s shares. The broker notes that the industry is growing at a stronger rate than it was expecting. However, due to valuation reasons, its analysts believe that Monash IVF Group Ltd (ASX: MVF) is the best way to gain exposure to the industry. The Virtus Health share price is trading at $6.10 this afternoon.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.