Experts tip 2 ASX 200 financial shares to sell and 1 to buy

As earnings season winds down, experts reveal their ratings on 3 financial stocks.

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ASX 200 financial shares closed higher on Wednesday, with the S&P/ASX 200 Financials Index (ASX: XFJ) increasing 0.54%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) lifted 0.28%.

As earnings season winds down, experts have revealed their ratings on three ASX 200 financial stocks.

Let's take a look.

Expert ratings on 3 ASX 200 financial shares

Westpac Banking Corporation Ltd (ASX: WBC

This ASX 200 bank share closed the session yesterday at $38.50, up 0.52% for the day and up 22% over the past six months. 

On The Bull this week, Peter Day from Sequoia Wealth Management revealed a sell rating on Westpac shares. 

Day summarised Westpac's latest financial report: 

The bank reported an unaudited statutory net profit of $1.9 billion in the third quarter of fiscal year 2025, up 14 per cent on the first half average.

The result was about 12 per cent to 14 per cent ahead of consensus estimates.

Revenue was up 4 per cent.

Net interest income increased 4 per cent, mostly due to an increase in the net interest margin to 1.99 per cent.

Treasury and Markets contributed 14 basis points, up from 12 basis points.

Day said Westpac's report was well received by the market.

However, he cautioned against assuming that revenue momentum would continue into the next quarter.

After a 22% gain in six months, Day says: "Investors may want to consider pocketing some gains." 

Pinnacle Investment Management Group (ASX: PNI)

Shares in this ASX 200 investment management firm rose 2.59% to $21.80 apiece on Wednesday. 

This ASX 200 financial share has lost 5.5% of its value over the past six months. 

Stuart Bromley from Medallion Financial Group has a buy rating on Pinnacle Investment Management Group shares. 

Bromley reviewed the key points of Pinnacle's recent report:  

The company announced that 91 per cent of affiliate strategies outperformed respective benchmarks over five years to June 30, 2025.

Pinnacle posted net profit after tax of $134.4 million in fiscal year 2025, up 49 per cent on the prior corresponding period.

Funds under management for aggregate affiliates was up 63 per cent in fiscal year 2025, supporting its medium to long term earnings outlook.

Bromley summed up that recent success "reinforces confidence in management's ability to execute on planned growth initiatives".

Commonwealth Bank of Australia (ASX: CBA)

Bromley also revealed a sell rating on CBA shares this week.

The CBA share price finished 0.44% higher at $169.83 yesterday. The ASX 200's largest financial share is up 9% over the past six months. 

The analyst commented on CBA's share price weakness since June and some potential headwinds ahead. 

Bromley said:

The shares have fallen from $191.40 on June 25 to trade at $173.80 on August 21.

But we still view the business as overvalued, as it was recently trading on a price/earnings ratio above 28 times.

Falling interest rates typically compress net interest margins for banks. Rising costs are also expected to deliver headwinds.

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 positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. 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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