On Wednesday we looked at 3 ASX shares that brokers have given buy ratings to this week.
On the flip side, today we look at 3 ASX shares that have just been given sell ratings by brokers.
Here's why these brokers are bearish on these ASX shares:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgans, its analysts have retained their reduce rating and cut their price target to $73. This follows the release of Commonwealth Bank's first-quarter update, which fell well short of Morgans' expectations. In light of this underperformance, the broker doesn't believe CBA's shares deserve to trade at such a premium to its peers. The CBA share price is trading at $98.08.
SEEK Limited (ASX: SEK)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target to $32. This follows the release of a trading update at Seek's annual general meeting. While Goldman has increased its earnings estimates to reflect strong near term revenue trends, it isn't enough for a change of rating. The broker continues to believe SEEK's shares are overvalued and sees better options for investors in the classifieds space. The SEEK share price is fetching $35.28 today.
Xero Limited (ASX: XRO)
Analysts at Macquarie have retained their underperform rating and $130 price target on this cloud accounting platform provider's shares. This follows the release of Xero's half-year results last week. Macquarie continues to believe that the company's shares are expensive at the current level. This is particularly so given the maturing Australia/New Zealand market and its belief that Xero will struggle to compete with QuickBooks in the massive US market. The Xero share price is trading at $149.24 this afternoon.
