On Monday 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 these ASX shares:
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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this banking giant's shares to $83.00. The broker is very positive on the banking sector and suspects that the earnings upgrade cycle will continue. This is expected to support a dividend recovery, much to the delight of income investors. Nevertheless, it believes the Commonwealth Bank share price is overvalued at the current level and sees more value in some of its peers. The Commonwealth Bank share price is trading $88.55 today.
Iluka Resources Limited (ASX: ILU)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $5.70 price target on this mineral sands producer's shares. This follows the recent release of Iluka's quarterly update. While Credit Suisse notes that zircon and rutile sales were strong, it was disappointed by the performance of the Sierra Rutile operation. Unfortunately, it is expecting the operation to continue to struggle and weigh on its performance. The Iluka share price is fetching $7.49 on Tuesday.
OZ Minerals Limited (ASX: OZL)
Another note out of Credit Suisse reveals that its analysts have retained their underperform rating and $16.15 price target on this copper producer's shares. This follows the release of its quarterly update last week. It notes that OZ Minerals' production during the quarter was softer than expected due to issues at the Carrapateena mine. And while it is expecting a stronger performance in the current quarter, it isn't enough for a change in rating. Credit Suisse continues to believe its shares are expensive at the current level. The OZ Minerals share price is trading notably higher than this price target at $24.62 today.
