Top brokers name 3 ASX shares to sell today

Brokers are bearish on these ASX shares…

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Yesterday I looked at three ASX shares 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 Morgan Stanley, its analysts have retained their underweight rating and $8.88 price target on this energy company’s shares. The broker has been looking at the sector and continues to prefer its rival Origin Energy Ltd (ASX: ORG), particularly given the uncertainty with AGL’s demerger. Morgan Stanley notes that the new AGL business is attractive, but the Accel business wouldn’t be for ESG reasons. The AGL share price is fetching $8.05 on Thursday.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Macquarie reveals that its analysts have downgraded this banking giant’s shares to an underperform rating but lifted their price target on them to $88.50. The broker made the move largely on valuation grounds after a strong gain this year. Speaking of which, it suspects that the outperformance could be over. The broker suggests that investors expecting bank share prices to outperform as interest rates rise may be disappointed. Macquarie’s analysis found that any rate increase benefit is less than what is commonly expected. The CBA share price is trading at $98.33 today.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have retained their underperform rating and $16.50 price target on this investment platform provider’s shares. According to the note, the broker has been impressed with its fund inflows but feels its shares are fully valued now. It also highlights that its price target already factors in upside from a rise in the cash rate and a recovery in deposit spreads in the coming years. The Netwealth share price is fetching $16.77 this afternoon.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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