Take profits now! Experts name 3 ASX 200 shares trading above their fundamental value

Experts say these ASX 200 shares may be ripe for profit-taking after strong price runs.

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S&P/ASX 200 Index (ASX: XJO) shares are up 0.32% to 8,854.4 points on Friday.

On The Bull this week, experts identified three ASX 200 shares that may be ripe for profit-taking after strong price runs.

Let's take a look.

3 ASX 200 shares ready for harvesting

SEEK Ltd (ASX: SEK)

Seek shares are currently 0.4% higher at $26.86 apiece.

The Seek share price has risen 20% over the past 12 months.

Last month, Seek reported a net revenue rise of 1% to $1,090 million and a 13% fall in adjusted profit to $155 million for FY25.

Seek was one of 8 ASX shares that experienced the best price upswings after their results during the August earnings season.

Jabin Hallihan from Family Financial Solutions says it's time to sell this ASX 200 communications share.

Seek shares have already overshot his price target of $23.58 apiece.

Hallihan said:

Seek trades at a premium to peers and expectations are high.

Any slowdown in hiring activity or economic softness could impact earnings.

It may be best to take profits on Seek while the market remains optimistic.

ARB Corporation Ltd (ASX: ARB)

Hallihan also has a sell rating on this consumer discretionary share.

The ARB share price is $39.56 at the time of writing, down 0.1%.

ARB makes and supplies 4-wheel drive accessories to Australian and international markets.

ARB Corporation reported revenue of $729.9 million, up 5.3%, and net profit after tax (NPAT) of $97.5 million, down 5%, for FY25.

Hallihan commented: "The company has benefited from strong export growth and brand loyalty, but margins are under pressure."

The analyst has a price target of $31.31 on this ASX 200 retail share.

He adds:

ARB trades at a premium to historical averages and, in our view, near-term catalysts are limited.

Investors may want to consider locking in gains following recent share price strength. 

The ARB share price has risen 12% over the past six months.

Commonwealth Bank of Australia (ASX: CBA)

Damien Nguyen from Morgans has added his name to the growing list of analysts recommending investors sell CBA shares.

During earnings season, CBA reported a 7% increase in statutory NPAT to $10.1 billion and a 4% lift in cash NPAT to $10.25 billion. 

Nguyen said:

The CBA remains Australia's most profitable bank, with a sector-leading return on equity and a dominant position in mortgages and deposits.

However, in our view, its share price has surged well beyond fundamentals, trading at a significant premium to peers. 

We continue to recommend reducing overweight positions, citing compressed return expectations and elevated trading multiples.

While CBA's quality is undisputed, we believe the risk-reward profile at current levels is unfavourable.

The ASX 200 bank share is up 68% since its bull run began in November 2023.

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 ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. 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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