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:
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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Credit Suisse, its analysts have downgraded this banking giant's shares to an underperform rating with a $95.00 price target. The broker made the move on valuation grounds, believing that there is limited upside ahead due to the multiples its shares trade on. In addition, the broker has downgraded its earnings estimates to reflect CBA's higher expenses and lower net interest margin. The CBA share price is fetching $105.54 today.
Computershare Ltd (ASX: CPU)
A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this stock transfer company's shares slightly to $15.30. This follows the release of its full year results for FY 2021. While Computershare delivered a result and guidance in line with its expectations, it isn't enough for a change of rating. Citi continues to believe its shares are a touch expensive relative to its near term growth prospects. The Computershare share price is trading at $16.24 this afternoon.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Morgans have retained their reduce rating and $19.30 price target on this iron ore producer's shares. According to the note, the broker suspects that Fortescue's shares could tumble once they trade ex-dividend. It highlights that in February, all three large miners fell by more than three times their dividend in the month after going ex-dividend. In addition to this, it has concerns over its increasing costs and market sentiment relating to Fortescue's push into green energy. The Fortescue share price is fetching $22.63 today.
