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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Macquarie, its analysts have downgraded this infant formula company’s shares to an underperform rating and cut the price target on them to $5.60. The broker made the move after a2 Milk downgraded its guidance for FY 2021 a fourth time. Looking ahead, the broker has concerns over its uncertain future. Particularly given the increasing competition in the China market from domestic producers. The a2 Milk share price has fallen heavily in recent days and is now trading in line with this price target at $5.60.
Commonwealth Bank of Australia (ASX: CBA)
Analysts at Morgans have retained their reduce rating but lifted their price target on this banking giant’s shares slightly to $73.00. According to the note, Commonwealth Bank delivered a third quarter update ahead of its expectations earlier this week. And while the broker acknowledges that the bank is of a very high quality, it isn’t enough to justify the premium its shares trade at. As a result, it believes its shares are overvalued and has held firm with its reduce rating. The CBA share price is trading at $96.32 this afternoon.
DEXUS Property Group (ASX: DXS)
A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this property company’s shares to $8.34. This follows the announcement of an agreement to acquire APN Property Group (ASX: APD). Although the acquisition is expected to boost its earnings, it isn’t enough for a change of rating. Particularly given the company’s significant exposure to offices. Citi fears office rents could suffer due to the working from home trend. The DEXUS share price is fetching $10.90 today.