Yesterday I looked at three ASX shares 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 and $90.00 price target on this banking giant's shares ahead of its first quarter update on Wednesday. The broker is expecting CBA to report a 2% increase in revenue but an ~8% decline in cash earnings to $2.28 billion. The latter is largely due to one off benefits in the prior corresponding period. All in all, the broker still believes the bank's shares are expensive and sees better value elsewhere in the sector. The CBA share price is trading at $107.79 this afternoon.
Western Areas Ltd (ASX: WSA)
A note out of Bell Potter reveals that its analysts have retained their sell rating but lifted their price target on this nickel producer's shares to $2.90. The broker has upgraded its valuation to reflect its forecast for higher than previously expected nickel prices but largely on potential corporate activity. However, it has warned that there could be significant downside for investors if a takeover does not materialise. The Western Areas share price is fetching $3.13 on Tuesday.
Xero Limited (ASX: XRO)
Analysts at UBS have retained their sell rating but lifted their price target on this cloud accounting platform provider's shares to $88.00. This follows the release of Xero's half year results last week. UBS was pleased with the company's performance in the first half and expects its growth to accelerate in the second half. However, that isn't enough for a change of rating. The broker continues to believe Xero's shares are too expensive in comparison to peers. The Xero share price is trading at $143.77 this afternoon.
