Yesterday we 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:
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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $92.50 price target on this banking giant's shares. Although Credit Suisse believes APRA's newly announced bank capital framework is a positive for the sector, it isn't enough for a change of rating. The broker continues to believe that CBA's shares are expensive at the current level and better value can be found elsewhere. The CBA share price is trading at $94.37 today.
Mineral Resources Limited (ASX: MIN)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $38.70 price target on this mining and mining services company's shares. This follows news that it has signed an agreement with Hancock Prospecting and Roy Hill to investigate the development of a new iron ore export facility in Port Hedland. The broker doesn't appear convinced by the move and sees downside risks to it. Particularly given how this could support increased supply and weigh on iron ore prices. The Mineral Resources share price is fetching $45.33 this afternoon.
Pact Group Holdings Ltd (ASX: PGH)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.30 price target on this packaging company's shares. This follows the release of a trading update at its annual general meeting. That update revealed that its Contract Manufacturing business has been underperforming due to challenging trading conditions. This doesn't appear to be a surprise to Morgan Stanley, which has been negative on the business for some time. And while the Pact share price has now fallen well beyond the broker's price target, it doesn't appear to be in a rush to change its rating.
