On Monday 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 that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts have reiterated their sell rating and $80.26 price target on this banking giant’s shares. While Goldman acknowledges that CBA’s balance sheet is strong and it has a sector leading capital position and superior performance on volume growth, it doesn’t believe this justifies the 42% premium it is currently trading on versus peers. The Commonwealth Bank share price is trading $98.34 this morning.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
A note out of UBS reveals that its analysts have retained their sell rating but increased their price target on this medical device company’s shares to NZ$24.80 (A$23.03). While a strong full year result for FY 2021 is expected later this month, UBS believes that its earnings will decline materially in FY 2022 due to lower pandemic-related sales. And although it expects its earnings to return to growth in FY 2023, it is only expected to be a modest increase. In light of this, it appears to believe that its shares are overvalued at the current level. The Fisher & Paykel Healthcare share price is fetching $31.14 today.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Citi have retained their sell rating but lifted the price target on this wine company’s shares to $9.70. This follows Treasury Wine’s investor day event last week. The broker notes that the company intends to reallocate some of its Chinese portfolio to the United States in an effort to drive sustainable growth over the long term. And although its guidance for FY 2021 was ahead of expectations, the broker notes that its longer term growth targets are not. As a result, it doesn’t appear to be in a rush to make a change to its recommendation. Particularly given the execution risks with its restructure. The Treasury Wine share price is trading at $11.22.