Top brokers name 3 ASX shares to sell today

Brokers are bearish on these ASX shares…

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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.

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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Xero. The Motley Fool Australia has recommended SEEK Limited. 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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