Leading brokers name 3 ASX shares to sell

On Wednesday I had a look at a number of shares that have been given buy ratings by brokers this week.

Today I thought I would take a look at a few shares which have fallen out of favour with brokers. They are as follows:

Ardent Leisure Group (ASX: AAD)

According to a note out of UBS, the broker has retained its sell rating but increased its price target on the entertainment company’s shares to $1.85 following the sale of its Bowling and Entertainment division to The Entertainment and Education Group for $160 million. Although the broker sees the move and changes to the U.S. tax rate as a positive, it hasn’t been enough to warrant a change in recommendation. I disagree on this one and think Ardent Leisure could be a good option for patient investors.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Citi reveals that its analysts have downgraded the lithium miner to a sell rating with a $1.05 price target. According to the note, the broker believes that all the positive news flow is now built into its share price and there is downside risk associated with delays from either construction and commissioning activities. While I agree with Citi, I wouldn’t go so far as a sell. I think the lithium miners are holds at this point.

Woodside Petroleum Limited (ASX: WPL)

Analysts at Credit Suisse have retained their underperform rating and lifted the price target on the energy company’s shares to $26.80. According to the note, the broker has revised its oil forecasts higher for 2018, but not enough to see value in Woodside Petroleum’s shares. While I am bullish on energy companies, I think there are better options out there for investors. In light of this, I would agree with Credit Suisse one this one.

While those shares may be classed as sells by brokers, I think these three shares are strong buys in 2018.

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Motley Fool contributor James Mickleboro has no position in any of the 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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