S&P/ASX 200 Index (ASX: XJO) shares are in the green on Tuesday, up 0.43% at 8,552.7 points.
Meanwhile, we reveal three ASX 200 shares that the brokers say are trading high with limited upside potential from here.
Perhaps it's time to take your profits and run?
Let's take a look.
Image source: Getty Images
Experts say sell on these 3 ASX 200 shares
QBE Insurance Group Ltd (ASX: QBE)
Courtesy of The Bull, Jed Richards of Shaw and Partners says taking profits on QBE shares may be "prudent" at this point.
Richards points out that the QBE share price has recently surged, rising from $19.32 on 7 April to $23.57 at the time of writing.
The QBE share price hit a 15-year high of $24.20 last Thursday.
He says:
In our view, the stock is trading near the top of its recent range.
We see limited upside, so locking in gains now could be a prudent move.
Sandfire Resources Ltd (ASX: SFR)
Richards says Sandfire Resources shares have delivered strong three-year growth due to rising market sentiment on copper.
The Sandfire share price has risen from $3.34 on 17 October 2022 to $11.71 at the time of writing.
The ASX 200 copper share reached a new all-time high of $11.88 last Thursday.
In our view, the strong performance has been driven by strong copper sentiment. However, the market may be overestimating future demand.
Valuations appear stretched, and locking in profits could be prudent before momentum slows or macroeconomic risks possibly weigh on commodity prices.
Richards reveals that Shaw and Partners has been selling Sandfire shares in favour of the ASX 200's largest mining stock, BHP Group Ltd (ASX: BHP).
BHP also has substantial copper assets, including a majority share (57.5%) of the Escondida mine in Chile.
Escondida is the world's largest producer of copper concentrates and cathodes.
As we recently reported, BHP has grown its copper division to represent 39% of earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Richards explains:
We have been selling Sandfire and switching to BHP to retain copper exposure amid gaining diversification to other commodities.
The BHP share price is $38.38 today, up 0.42%.
The ASX 200 iron ore share is trading in the middle of its 52-week range of $33.25 — $46.23 per share.
Commonwealth Bank of Australia (ASX: CBA)
Morgans analyst Damien Nguyen has added his voice to the growing chorus of experts recommending investors sell CBA shares.
The CBA share price reset its all-time record again last week when it touched $182 per share on Thursday.
Nguyen points out that CBA shares are trading at a significant premium to their ASX 200 banking peers and global banks.
He explains:
Shifting economic conditions, including potential interest rate cuts, could impact profitability.
We're concerned the bank's high valuation leaves little room for disappointment, and could make it vulnerable to market corrections.
For investors who have enjoyed strong returns, now may be a good time to lock in gains and reduce exposure.
The CBA share price is currently $180.13, up 0.13%.
