On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts have downgraded this banking giant's shares to a sell rating from neutral with an improved price target of $74.95. The broker made the move on valuation grounds and due the bank's heightened exposure to lower rates. Goldman believes that CBA's large deposit base represents a significant earnings headwind when rates fall from such a low level. The banking giant's shares are trading 0.6% lower at $81.70 on Tuesday afternoon.
Inghams Group Ltd (ASX: ING)
A note out of Citi reveals that its analysts have retained their sell rating and $3.85 price target on this poultry producer's shares. According to the note, the broker believes that Inghams will need to increase its prices materially if it hopes to offset rising feed costs. And whilst the broker sees potential for poultry volumes to increase if African Swine Fever impacts red meat prices, it isn't enough for the broker to change its recommendation just yet. The Inghams share price is trading 0.5% higher at $4.04 at the time of writing.
ResMed Inc. (ASX: RMD)
Equity analysts at Macquarie have retained their underperform rating and lifted the price target on this sleep treatment focused medical device company's shares to $15.00. According to the note, the broker doesn't believe the market has priced in the risks associated with changes to reimbursement charges in the United States and increasing competition. The ResMed share price is trading 0.5% higher at $17.61 on Tuesday afternoon.
