With most brokers still off for the holidays, notes were hard to come by last week.
In light of this, I have picked out three recent broker notes that remain very relevant today. Here's why brokers think investors should sell these ASX shares:
Blackmores Limited (ASX: BKL)
According to a note out of Citi, its analysts have a sell rating and $67.00 price target on this health supplements company's shares. The broker believes that Blackmores' shares are expensive given the uncertainty around the sustainability of its profits in Australia and China. In light of this, Citi appears to believe investors should wait for a better entry point. The Blackmores share price was trading at $87.15 at Friday's close.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Credit Suisse reveals that its analysts have an underperform rating and $92.50 price target on this banking giant's shares. Although Credit Suisse believes APRA's recently announced bank capital framework is a positive for the sector, it isn't enough for a change of recommendation for CBA. The broker continues to believe that the bank's shares are expensive at the current level and better value can be found elsewhere. The CBA share price was fetching $102.65 at the end of last week.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Goldman Sachs have a sell rating and $11.00 price target on this mining giant's shares. According to the note, the broker expects Fortescue's shares to come under pressure from weak low grade iron ore prices and the strategic uncertainty implied by its openness to entering other markets (e.g. renewables). The Fortescue share price was trading notably higher than this price target at $20.73 on Friday.
