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:
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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and $82.94 price target on this banking giant's shares. This follows news that the bank has signed an agreement to sell a 10% shareholding in Bank of Hangzhou. Goldman sees this partial sale as consistent with the bank's strategy of focusing on its core operations. And while it expects it to also strengthen its capital position, it still isn't enough for a change of rating. The broker continues to believe that CBA's shares are expensive at the current level. The CBA share price is trading at $94.72 on Thursday.
Graincorp Ltd (ASX: GNC)
A note out of Bell Potter reveals that its analysts have retained their sell rating and $6.70 price target on the grain exporter's shares. Although the broker acknowledges that trading conditions are favourable at present, it doesn't expect this to last. As a result, it expects the company will struggle to cycle record volumes and trading margins in FY 2023 and FY 2024, which it fears will weigh heavily on its shares. The GrainCorp share price is fetching $8.70 today.
Zip Co Ltd (ASX: Z1P)
Analysts at UBS have downgraded this buy now pay later provider's shares to a sell rating and cut the price target on them by 80% to a lowly $1.00. UBS made the move to reflect lower long-term profit forecasts, share dilution from its capital raising, and Zip's overall uncertain outlook. The broker also highlights that Zip now expects to be profitable in FY 2024 following its proposed acquisition of Sezzle Inc (ASX: SZL), which is later than UBS was forecasting. The Zip share price is trading at $1.90 on Thursday afternoon.
