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:
ASX Ltd (ASX: ASX)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this stock exchange operator's shares to $74.00. While the broker sees a few small reasons to be positive and has increased its valuation accordingly, it isn't enough for a change of rating. Morgan Stanley continues to believe that the company's shares are expensive at the current level. The ASX share price is trading at $80.70 on Thursday afternoon.
Commonwealth Bank of Australia (ASX: CBA)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $92.00 price target on this banking giant's shares. The note reveals that the broker believes the proposed sale of a 10% stake in Bank of Hangzhou could support another ~A$2bn share buyback. However, while this would be a positive, it isn't in a rush to change its rating. It continues to believe CBA's shares are overvalued. The CBA share price is fetching $106.95 today.
Vicinity Centres (ASX: VCX)
Analysts at Morgan Stanley have also retained their underweight rating and $1.82 price target on this shopping centre operator's shares. This follows a review of the real estate sector ahead of interest rate rises. Outside this, the broker remains bearish on Vicinity partly on valuation ground and also on concerns over the retail side of the real estate sector. The Vicinity Centres share price is trading at $1.85 on Thursday.
