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 Morgan Stanley, its analysts have retained their underweight rating and $70.00 price target on this banking giant's shares. The broker notes that the recent share price gains indicate that the market is expecting a strong half year result next month. It appears concerned that a failure to deliver on this could put a lot of pressure on its shares. Morgan Stanley is also looking for a $2 billion off-market share buyback and expects investors to be disappointed if this doesn't materialise. The CBA share price is down 0.5% to $83.46 on Tuesday.
Insurance Australia Group Ltd (ASX: IAG)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this insurance giant's shares slightly to $7.05. According to the note, the broker has concerns over the softer economic environment. It also notes that its shares are trading at a sizeable premium to its peers and suspects that this could narrow in the near term and weigh on its shares. The Insurance Australia share price is down over 1% to $7.63.
Scentre Group (ASX: SCG)
Analysts at UBS have downgraded this shopping centre owner and operator's shares to a sell rating and cut the price target on them to $3.70. According to the note, the broker made the move due to concerns over a recent run of retailers closing stores and entering administration. It estimates that these recent events could impact its portfolio by 84 tenancies. It also suspects that retail valuations will come under pressure due to an increase in income uncertainty and from the large number of retail assets currently on the market. The Scentre share price has fallen over 1% to $3.94 today.
