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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Blackmores Limited (ASX: BKL)
According to a note out of Citi, its analysts have retained their sell rating and $71.00 price target on this health supplements company's shares. This follows an update from rival Swisse which flagged difficult trading conditions in China. In addition to this, the broker notes that competition in Australia remains aggressive. The Blackmores share price is trading at $96.98 today.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Macquarie reveals that its analysts have retained their underperform rating and $86.00 price target on this banking giant's shares. Macquarie believes investors would be better focusing on commercial-focused banks ahead of retail focused banks like CBA. It expects the former to deliver better profit growth. In light of this, Macquarie doesn't believe CBA's shares deserve to trade at such a premium. The CBA share price is fetching $96.81 this afternoon.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Goldman Sachs have retained their sell rating and $11.00 price target on this mining giant's shares. According to the note, the broker expects Fortescue's shares to remain under pressure due to lower iron ore prices and the strategic uncertainty implied by its openness to entering other markets (e.g. renewables). The Fortescue share price is trading at $17.03 on Tuesday.
