'Lock in profits at these levels': Expert's verdict on 2 ASX 200 shares

Tony Locantro of Alto Capital says it might be time to take profits on these high-flying ASX 200 shares.

S&P/ASX 200 Index (ASX: XJO) shares are up 1.09% at 8,567.2 points amid news of the Iran-Israel ceasefire on Tuesday.

Meanwhile, Tony Locantro of Alto Capital has put a sell rating on two ASX 200 shares that he thinks have become expensive.

Let's take a look.

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Expert slaps sell ratings on 2 ASX 200 shares

JB Hi Fi Ltd (ASX: JBH)

Courtesy of The Bull, Locantro says taking some profits "may be prudent" on JB Hi-Fi shares.

He points out that the JB Hi-Fi share price has ripped from $86 per share on 7 April to $109.95 at the time of writing.

The analyst says the consumer electronics giant has performed well during the cost-of-living crisis.

Locantro comments:

JB Hi-Fi's Australian operations grew total sales by 6.5% in the third quarter of fiscal year 2025.

Total JB Hi-Fi sales in New Zealand soared by 17.5%.

It's an enviable performance given Australia's cost of living crisis that's about to be exacerbated by increasing power prices.

JB Hi-Fi shares hit an all-time high of $112.98 on 4 June.

Locantro says the ASX 200 consumer discretionary share is now expensive.

The stock is trading on a lofty price/earnings ratio, in our view.

The shares are expensive, so taking some profits may be prudent in this economy.

JB Hi-Fi shares are trading at a P/E of 25x today.

Commonwealth Bank of Australia (ASX: CBA)

Locantro also has a sell rating on CBA shares.

The CBA share price has been on a tear since the ASX bank stock run began in November 2023.

CBA shares are 81% higher today than they were just 20 months ago.

The CBA share price reset its record high in earlier trading at $188.36.

Whilst Locantro regards CBA as an "ASX success story", he points out that their P/E is vastly higher than other ASX 200 bank shares.

The bank was recently trading on a price/earnings ratio above 31 times. 

Relative to its peers, the CBA is expensive.

Westpac Banking Corp (ASX: WBC) was recently trading on a price/earnings ratio of about 16 times and ANZ Group Holdings Ltd (ASX: ANZ) was on 13 times.

In our view, this bank is priced to perfection and is exposed to a correction if economic growth slows.

Investors may want to lock in some profits at these levels.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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