Yesterday we 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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Boral Limited (ASX: BLD)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $6.10 price target on this building products company's shares. This is despite the company announcing the sale of its US based Fly Ash business and the broker expecting the majority of these funds to be returned to shareholders. Morgan Stanley remains bearish and continues to forecast a sharp decline in half year earnings. The Boral share price is trading at $6.13 on Tuesday afternoon.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgans reveals that its analysts have retained their reduce rating and $73.00 price target on this banking giant's shares. This follows a review of the banking sector. While Morgans is positive on the sector, it continues to believe the CBA share price is overvalued at the current level. The broker has previously stated its belief that the premium its shares trade at to the other big banks is unjustifiably large. The CBA share price is fetching $96.98 today.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at UBS have retained their sell rating and $29.50 price target on this fund manager's shares. This follows the release of Magellan's latest funds under management update. While the broker was pleased to see the company's run of net outflows come to an end in November, it wasn't enough for a change of rating. UBS continues to see risk to the downside for its revenue and funds given the investment underperformance of its flagship fund. The Magellan share price is now trading below this price target at $28.90 after falling 7% today.
