On Thursday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here's why they are bearish on them:
ASX Ltd (ASX: ASX)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $74.00 price target on this stock exchange operator's shares. This follows the announcement that its CHESS replacement project has been delayed from its April 2023 go-live target date. While the broker was expecting such a delay, it warned that this could mean operating costs will be higher for longer. It also sees risks for write downs on its prior investment expenditure if it has to switch approach. The ASX share price is trading at $81.92 on Friday.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Macquarie reveals that its analysts have retained their underperform rating and $90.00 price target on this banking giant's shares. Macquarie suspects that CBA could struggle to outperform its rivals in respect to revenue growth in the coming years due partly to sustained mortgage competition. In light of this, it feels the company's shares don't warrant their premium valuation. The CBA share price is fetching $101.98 this afternoon.
Insurance Australia Group Ltd (ASX: IAG)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $4.05 price target on this insurance company's shares. While Morgan Stanley sees rising interest rates as a positive for IAG, it appears to believe it is too soon to get excited. Especially given how inclement weather could lead to higher claims. The IAG share price is trading at $4.62 today.
