On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here's why they are bearish on them:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgans, its analysts have retained their reduce rating and $74.00 price target on this banking giant's shares ahead of its first half results. Morgans continues to believe that CBA's shares are overvalued at the current level and don't deserve to trade at such a premium to the rest of the big four banks. As for its result, the broker expects cash earnings of $4.320 billion and a fully franked interim dividend of $1.74 per share. The CBA share price was trading at $93.44 on Thursday.
Fortescue Metals Group Limited (ASX: FMG)
A note out of UBS reveals that its analysts have retained their sell rating but lifted their price target on this iron ore giant's shares to $16.70. The broker has lifted its price target to reflect stronger than expected iron ore prices. However, this isn't enough for a change of rating, with the broker continuing to believe Fortescue's shares are expensive at the current level. The Fortescue share price was fetching $21.13 today.
Western Areas Ltd (ASX: WSA)
Analysts at Morgan Stanley have retained their underweight rating and $2.95 price target on this nickel producer's shares. This follows the release of the company's quarterly update which fell short of the broker's expectations. In light of this, Morgan Stanley sees no reason to make any changes to its recommendation at this point. The Western Areas share price was trading at $3.43 this afternoon.
