Here are 3 ASX shares which brokers think you should sell

Unfortunately not all shares have found favour with Australia’s leading brokers like these in the last few days.

Some have fallen out of favour so much they have been downgraded to sell ratings. Here are three which stood out:

Adelaide Brighton Ltd. (ASX: ABC)

A research note out of UBS reveals that it has placed a sell rating and a $5.00 price target on the cement and lime manufacturer and distributor’s shares. According to the note UBS believes that Adelaide Brighton’s cement margins are likely to have peaked and could soon start to narrow. If the strong cement margins that the company has been enjoying prove to have peaked, then I do think its profit growth and shares could come under pressure over the next 12 months.

Regis Resources Limited (ASX: RRL)

Analysts at UBS have also downgraded this leading gold producer to a sell rating with a $3.13 price target. Analysts at the leading investment bank think the gold mining sector and Regis in particular look expensive. As a result it sees better risk/reward elsewhere on the market. As I’m reasonably bearish on the gold price I would have to agree with UBS on this one. While rising tensions in Syria and North Korea may give the gold price a short term boost, I expect U.S. rate rises will send the precious metal on a path to US$1,000 an ounce over the next year or two.

Whitehaven Coal Ltd (ASX: WHC)

According to a research note out of Macquarie, its analysts have downgraded the coal producer to an underperform rating with a $2.70 target price. While Whitehaven’s recent quarterly report was reasonably solid, its sales were slightly lower than its analysts had expected. Furthermore, although coal prices have risen, they expect the company will have to offer larger discounts to be able to increase semi-soft coal sales. Whilst Whitehaven’s share price has fallen heavily in the last couple of weeks, it would still have to fall significantly more before I’d consider an investment.

But here are three shares which I think are definitely strong buys today. Each has been growing earnings at an increasingly strong rate and look set to have extremely bright futures in my opinion.

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This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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