Top brokers name 3 ASX shares to sell today

Brokers are bearish on these ASX shares…

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Business man marking Sell on board and underlining it

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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:

BWP Trust (ASX: BWP)

According to a note out of UBS, its analysts have retained their sell rating and $3.86 price target on this Bunnings-focused commercial property company’s shares. This follows the release of BWP’s full year results earlier this week. While the company’s result was largely in line with expectations, UBS has concerns over its growth in the coming years. The broker suspects that it could experience a larger than normal amount of lease non-renewals over the next five years. The BWP share price is fetching $3.97 this afternoon.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this banking giant’s shares to $81.87. Goldman is expecting Australia’s largest bank to deliver a strong full year result next week and suspects that a $2.00 per share special dividend could be declared. However, this isn’t enough for a change of rating. It continues to believe its shares are overvalued and better value can be found elsewhere in the sector. The CBA share price is trading at $103.12.

Reece Ltd (ASX: REH)

Analysts at Morgan Stanley have commenced coverage on this plumbing parts company’s shares with an underweight rating and $16.40 price target. Although the broker is a fan of Reece and believes it is a high quality company, it isn’t a fan of its valuation. It believes the current share price is unsustainable and the risk is firmly to the downside. Morgan Stanley estimates that its shares are trading at over 50x full year earnings. The Reece share price is fetching $23.98 today.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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