On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.
Here's why these brokers are bearish on them:
Carsales.Com Ltd (ASX: CAR)
According to a note out of UBS, its analysts have downgraded this auto listings company's shares to a sell rating with an improved price target of $17.50. Although the broker notes that Carsales looks well-placed for a stronger second half and has a positive long-term outlook, it believes this is already priced into its shares. So with them now trading notably higher than its price target, it has decided to downgrade its rating to a sell. Carsales shares are down 0.5% to $18.97 this afternoon.
Coca-Cola Amatil Ltd (ASX: CCL)
Analysts at Goldman Sachs have retained their sell rating and $9.40 price target on this beverage company's shares ahead of its full year results release next week. The broker expects Coca Cola Amatil to deliver a net profit after tax of $381.9 million. This will be a year on year decline of 4.9%. In light of this profit decline, it feels its shares are expensive at 22.5x estimated full year earnings. The Coca Cola Amatil share price is down 1.5% to $11.83 on Thursday.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgans reveals that its analysts have downgraded this banking giant's shares to a reduce rating with a $74.00 price target. Although Commonwealth Bank delivered a better than expected first half result, it doesn't feel it is enough to justify the premium its shares are trading at currently. Overall, the broker feels its shares are expensive and has downgraded them accordingly. The Commonwealth Bank share price is changing hands at $88.28 this afternoon.
