Yesterday we looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
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 ahead of its half year results. The broker believes that the market may be expecting too much from the bank's net interest margins. In light of this, it is expecting CBA's earnings to come in below consensus expectations. The CBA share price is trading at $94.34 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $17.20 price target on this fund manager's shares. This follows news that its Chief Investment Officer, Hamish Douglass, is taking indefinite medical leave. Morgan Stanley appears to have concerns about the impact this could have on its funds under management, particularly given how its investment performance remains soft. The Magellan share price is fetching $17.42 on Tuesday.
Nearmap Ltd (ASX: NEA)
Analysts at Macquarie have downgraded this aerial imagery technology and location data company's shares to an underperform rating and slashed the price target on them to $1.30. While the broker believes Nearmap is operating in a growing market, it sees competition increasing in the ANZ region and believes higher costs will be required in the North America region. In light of this and litigation risks, it doesn't see enough value in its shares at the current level. The Nearmap share price has fallen heavily today and is now trading in line with this price target at $1.30.
