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Here are 3 ASX shares leading brokers think you should sell

Brokers up and down Australia have been busy taking in new data and adjusting their discounted cash flow models accordingly.

While some shares have come out of this favourably, others have come out with sell ratings. Here are three shares which leading brokers think you should sell today:

GUD Holdings Limited (ASX: GUD)

A research note out of Citi reveals that its analysts have reiterated their sell rating and $11.44 price target on the retailer’s shares following its decision to offload its struggling Dexion business to Tech-Link Storage Engineering for approximately $7.5 million. This was significantly less than what Citi had anticipated. Considering the Dexion business provided 27% of GUD’s half-year revenue, I would have to agree with Citi that this looks cheap. With GUD’s shares up 15% year-to-date and changing hands at 18x trailing earnings, I think they are a touch expensive now and best avoided.

Healthscope Ltd (ASX: HSO)

Credit Suisse has downgraded the private hospital operator to an underperform rating and reduced its target price to $2.10. With industry volume growth running below its long-term average and an unfavourable shift from overnight stays to day surgeries impacting the industry, Credit Suisse has downgraded its full-year profit growth forecast for Healthscope. Rival Ramsay Health Care Limited (ASX: RHC) is also expected to be impacted, but has only been downgraded to a neutral rating. If this proves to be the case then I think Healthscope could be one to avoid.

Suncorp Group Ltd (ASX: SUN)

A note out of Morgan Stanley reveals that it has reiterated its underweight rating and $12.00 price target on this leading insurer’s shares. Whilst its analysts acknowledge that the One Suncorp strategy could provide meaningful upside, until there is hard evidence that the strategy is working they plan to keep a safe distance. I’m very optimistic on the strategy and cautiously expect positive news from the insurer later this week. Suncorp will hold its investor day on Thursday.

Whilst the shares above may be classed as sells, I think these fast-growing shares could be regarded as strong buys today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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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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