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Leading brokers name 3 ASX shares to sell

On Tuesday I had a look at a few shares which brokers had named as buys this week.

Today I thought I would take a look at the other side of the coin, at the shares which have been tipped as sells. Here are three that caught my eye:

Newcrest Mining Limited (ASX: NCM)

According to a note out of Credit Suisse, the broker has retained its underperform rating and $18.50 price target after the gold miner provided an update on its Cadia operation. The broker doesn’t appear to believe that there will be any production out of Cadia during the second-half, which would weigh heavily on its earnings. Credit Suisse expects earnings per share of 19.9 cents compared to the broker consensus of 59 cents. I agree with Credit Suisse on this one and think investors should avoid Newcrest at least until Cadia is up and running once again.

News Corp (ASX: NWS)

A note out of UBS reveals that its analysts have initiated coverage on the media giant with a sell rating and $20.40 price target. According to the note, although the broker sees upside potential for its non-REA Group Limited (ASX: REA) assets following changes to cross-media ownership laws and the Foxtel/Fox Sports merger, it isn’t enough to warrant a higher rating. I think UBS is correct in its assessment and believe News Corp’s shares are overvalued at the moment.

OZ Minerals Limited (ASX: OZL)

Analysts at Credit Suisse have also retained their underperform rating and $8.55 price target on the shares of this copper miner. The broker doesn’t appear to believe that the Avanco Resources (ASX: AVB) takeover offers much in the short-term. It does, however, believe that value could potentially be found in Avanco’s undeveloped assets and exploration opportunities. While I would prefer to buy its shares at a cheaper price, I think OZ Minerals is reasonably attractive given the positive outlook for global economic growth.

While they may be classed as sells, I believe these top shares ought to be classed as strong buys this week.

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