S&P/ASX 200 Index (ASX: XJO) shares are down 0.7% to 8,726.2 points on Thursday.
With a new financial year now underway, perhaps you are looking for some fresh investment ideas.
Morgan Stanley reckons we shouldn’t go near these ASX 200 shares for now.
Here are five stocks with sell ratings from the broker at the start of FY27.
Fortescue Ltd (ASX: FMG)
The Fortescue share price is $18.30, down 0.5% today.
The ASX 200 mining share has risen 13% over 12 months.
Morgan Stanley reiterated its sell rating on Fortescue shares today.
The broker cut its 12-month price target from $18.85 to $17.25.
This implies a potential 5% downside ahead.
Westpac Banking Corp (ASX: WBC)
The Westpac share price is $36.09, down 0.4% today.
The ASX 200 bank share has risen 7.1% over the past year.
Morgan Stanley reiterated its sell rating on Westpac shares with a $31.50 target yesterday.
This implies a potential capital decline of 13% ahead.
Deterra Royalties Ltd (ASX: DRR)
The Deterra Royalties share price is $4.39, down 2.1% today.
The ASX 200 materials share has risen 12% over 12 months.
Deterra has a portfolio of 14 royalties and royalty-like offtake assets in seven nations.
It is invested in iron ore, lithium, mineral sands, copper, molybdenum, and gold.
Mining royalties are agreements in which a third party provides financing to a miner in exchange for a portion of future revenues or production.
Morgan Stanley downgraded the stock to a sell rating today.
The broker shaved its 12-month price target from $4.45 to $3.95.
This suggests a potential 10% downside ahead.
Commonwealth Bank of Australia (ASX: CBA)
The CBA share price is $167.10, down 0.6% today.
CBA shares have dropped 6.6% over the past 12 months.
Morgan Stanley maintained its sell rating on CBA shares with a $125 target this week.
This suggests a potential 25% downside for FY27.
National Australia Bank Ltd (ASX: NAB)
The NAB share price is $38.98, down 1.6% today and down 0.8% over 12 months.
Morgan Stanley kept its sell rating on NAB shares with a $34.50 target this week.
This implies an 11% downside from here.
The post Dump ’em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares appeared first on The Motley Fool Australia.
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.