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 that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
Coles Group Ltd (ASX: COL)
According to a note out of UBS, its analysts have retained their sell rating and $16.50 price target on this supermarket giant's shares. Although Coles delivered a better than expected first quarter sales update, the broker believes the outlook for food sales in Australia is weakening. In light of this, UBS now has a negative view on the sector as a whole and not just Coles. The Coles share price is fetching $17.17 on Tuesday.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $84.40 price target on this banking giant's shares. Goldman has been looking through recent data provided by APRA. And while CBA leads the major banks in both housing lending and retail deposits growth, it isn't enough for a more positive rating. The broker has previously stated that it believes the CBA share price is severely overvalued at 21x estimated FY 2022 earnings. The CBA share price is trading at $105.26 today.
IGO Ltd (ASX: IGO)
Analysts at Morgan Stanley have retained their underweight rating and $8.25 price target on this battery materials mining company's shares. This follows the release of its latest quarterly update. While that update revealed that the miner's production is on target in FY 2022, its costs were higher than the broker was expecting. In light of this, Morgan Stanley isn't in a hurry to change its rating and continues to believe IGO's shares are overvalued at the current level. The IGO share price is fetching $9.19 this afternoon.
