Leading brokers name 3 ASX shares to sell today

AMP Limited (ASX:AMP) shares are one of three tipped as sells by leading brokers this week…

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On Monday I looked at three shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in the good books with brokers and some have been given the dreaded sell rating.

Three that caught my eye are listed below. Here's why they are rated as sells:

AMP Limited (ASX: AMP)

According to a note out of UBS, its analysts have retained their sell rating and $3.30 price target on the embattled financial services company. The broker held firm with its rating after AMP downgraded its profit guidance and provided an update on its business reset. Analysts at UBS feel that this update is only the beginning and expect the company to have to address significant issues impacting the business. I wouldn't be a buyer of its shares just yet and would agree with UBS' view that it is one to avoid.

Independence Group NL (ASX: IGO)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on the diversified miner's shares to $4.50. The broker made the move after Independence Group lowered its production outlook for nickel and copper and downgraded its reserve grade at Nova. The downgrade in reserve grade was much more severe than its analysts had expected. While I wouldn't necessarily be a seller of all my shares if I were a shareholder, it might be prudent to take a bit of profit off the table after an impressive 12-month gain.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have downgraded Netwealth's shares to an underperform rating with a lower price target of $7.35. The broker has made the move on the back of increasing competition in the advised platform market. As I mentioned yesterday, a price war was kicked off recently when Westpac Banking Corp (ASX: WBC) operated BT Financial Group slashed the prices of its BT Panorama product. While the broker believes there is still a significant opportunity for Netwealth and its peers, it does have concerns over the impact that price competition will have on margins and customer churn levels.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 Scott Phillips.

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