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Leading brokers name 3 ASX shares to sell today

On Tuesday I looked at a few shares that had been given buy ratings by leading brokers this week.

Today I thought I would look at a few shares that have fallen out of favour with brokers and been given the dreaded sell rating.

Here are three recommendations that caught my eye:

Brambles Limited (ASX: BXB)

According to a note out of Morgan Stanley, its analysts have reinitiated coverage on Brambles with an underweight rating and $9.00 price target. The broker appears to be concerned that the supply chain logistics company could face significant cost increases in its key markets. Although Morgan Stanley acknowledges that strategies are in place to attempt to combat this, it doesn’t expect these to bear fruit until post-FY 2020. In light of this, Morgan Stanley has predicted that Brambles will significantly underperform the market’s expectations over the next couple of years. I would suggest investors heed the advice of Morgan Stanley and avoid Brambles.

Coca-Cola Amatil Ltd (ASX: CCL)

Analysts at Morgan Stanley have also retained their underweight rating on this leading beverage company. The broker has also held firm with its $8.00 price target after a visit to Indonesia showed little by way of improvement in weak consumer trends. Its analysts have noted that competition in the Indonesian beverages market remains fierce, which is likely to lead to soft volumes and pricing. While I wouldn’t necessarily class Coca-Cola Amatil as a sell due to the undemanding multiples its shares trade on, I wouldn’t be rushing in to buy its shares just yet. I would class it as a hold at this point.

Navitas Limited (ASX: NVT)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $4.00 price target on the education company’s shares. The broker appears to have been left disappointed by Navitas’ recent update and its slower than expected growth in the first semester. Although its analysts have predicted an improvement in FY 2019, they still feel that its shares are fully valued at present. I would have to agree with Credit Suisse on this one and would suggest investors consider industry peer IDP Education Ltd (ASX: IEL) instead.

Finally, here are three buy-rated growth shares that I would buy instead of Navitas.

3 buy-rated growth shares to buy this month

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Coca-Cola Amatil Limited. 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 Scott Phillips.

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