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 Morgan Stanley, its analysts have retained their underweight rating and $92.00 price target on this banking giant’s shares. Morgan Stanley has been looking at the impact that cash rate rises will have on the sector. Unfortunately, it suspects that any net interest margin boost from hikes may be partly offset by higher funding costs, more intense mortgage competition, and modestly higher loan losses. Outside this, the broker believes CBA’s shares are overvalued at the current level. The CBA share price is trading at $106.40 on Thursday.
IGO Ltd (ASX: IGO)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this battery materials focused miner’s shares to $11.35. While the broker has lifted its earnings and dividend estimates to reflect stronger commodity prices, it isn’t enough for a change of rating due to its current valuation. The IGO share price is fetching $14.04 on Thursday afternoon.
Vicinity Centres (ASX: VCX)
A final note out of Morgan Stanley shows that its analysts have retained their underweight rating and $1.82 price target on this shopping centre operator’s shares. Morgan Stanley fears that it could take some time for Vicinity Centres’ earnings to bounce back. It suspects that even if temporary COVID-19 impacts on income were to stop now, its funds from operations would still be 12% to 14% lower than pre-COVID levels. The Vicinity Centres share price is trading at $1.87 today.