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.

More reading

• China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares
• I’d buy these 5 ASX dividend investments for retirement income
• These ASX shares could generate $10,000 per year in passive income
• Are NAB shares a buy, hold, or sell this month?
• Why I’d buy BHP and CBA shares in July

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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,737.7 points on Thursday.

Brokers have reduced their ratings on many ASX 200 shares this week.

Let’s take a look at their new ratings and 12-month share price targets.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is $157.90, down 3.6% today.

Over the past 12 months, this ASX 200 mining share has climbed 47%.

Morgan Stanley downgraded Rio Tinto shares to a sell rating today.

The broker has a 12-month price target of $149.

This implies a potential 5% downside ahead.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $10.15, down 3.6% today.

Magellan was one of the top 5 ASX 200 financial shares for capital growth in FY26, rising 13%.

The highlight of the year was Magellan’s proposed merger with boutique investment bank, Barrenjoey Capital Partners.

Magellan and Barrenjoey completed the merger on 1 July. 

Morgans downgraded Magellan shares to a hold rating on Monday.

The broker lifted its 12-month price target slightly from $11.19 to $11.29.

This implies a potential 11% upside ahead.

Magellan will ask shareholders to vote on a company rebrand to Barrenjoey Group at the AGM in October.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $5.48, up 0.2% today.

This ASX 200 consumer discretionary share has risen 2.1% over the past year.

Citi downgraded the stock to a sell rating with a $5 target this week.

This indicates a possible 8% decline ahead.

Transurban Group (ASX: TCL)

The Transurban share price is $14.69, up 0.2% today.

This ASX 200 industrials share has risen 9.5% over 12 months.

UBS downgraded Transurban shares to a hold rating with a $14.50 target.

This suggests a potential 1% downside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $11.01, down 3.7% today.

This ASX 200 gold share has stormed 51% higher over the past year.

Macquarie downgraded Evolution shares to a hold rating yesterday.

The broker lowered its 12-month price target from $13 to $12.

This suggests potential capital growth of 8% over the next year. 

Worley Ltd (ASX: WOR)

The Worley share price is $10.78, up 0.5% today.

This ASX 200 industrials share has tumbled 18% over the past 12 months.

Ord Minnett downgraded Worley shares from accumulate to hold with a $12.70 target on Wednesday.

This still implies a potential 18% upside ahead.

The broker said:

There remains considerable uncertainty over short-term earnings for Worley and its peers.

More broadly, we highlight the change in Worley’s business mix, with a modest shift to engineering, procurement and construction (EPC) work, i.e. larger developments and responsibility for full project delivery, a business segment that is higher risk than traditional consultancy and advisory.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 89 cents, up 0.2% today.

Judo shares were sold off in June after the bank downgraded its profit guidance.

Ord Minnett downgraded Judo shares from a buy to a hold rating yesterday.

The broker slashed its 12-month price target from $2.40 to $1.60.

This implies a potential 80% upside ahead.

Ord Minnett commented:

We also cut our recommendation on Judo to Hold from Buy despite the apparent value on offer, given uncertainty around the company’s processes and the time it will take for management to rebuild market confidence.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $209.07, down 1.4% today.

Pro Medicus shares hit a 52-week low of $107.75 on 24 February. Since then, the ASX 200 healthcare share has ripped 94% higher.

Jefferies thinks the stock has overshot. The broker downgraded Pro Medicus shares to a hold rating yesterday.

The broker lifted its share price target substantially from $147 to $192.60.

But with Pro Medicus shares already trading well above that, the broker recommends investors sit tight.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $18.79, down 1% today.

This ASX 200 financial share has fallen 9.7% over 12 months.

Jarden downgraded Suncorp shares to a hold rating on Monday.

The broker raised its 12-month price target slightly from $19.10 to $19.60.

This implies a potential 4% upside ahead.

The post 9 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares with 50% to 100% upside in FY27
• How to build $60,000 in annual passive income from ASX dividend shares
• China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares
• I’d buy these 5 ASX dividend investments for retirement income
• 5 top ASX dividend shares to buy in July

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jefferies Financial Group, Macquarie Group, The Lottery Corporation, and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Macquarie Group, Pro Medicus, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pantoro Gold Ltd (ASX: PNR) shares are being smashed on Wednesday after the gold miner released its FY26 result and FY27 guidance.

At the time of writing, the Pantoro share price is down a massive 20.59% to $1.755.

The fall adds to a brutal run for the ASX gold stock. Pantoro shares are now down around 34% over the past month and 64% since the start of 2026.

Here’s what the company revealed.

Production misses the mark

According to the release, Pantoro produced 77,408 ounces of gold in FY26, including 18,028 ounces in the June quarter.

The weaker result mainly came down to the underground operations.

Pantoro said production was below expectations at the OK and Scotia underground mines, with contractor performance and labour shortages both weighing on the result.

The OK mine also had a messy finish to the year.

Production in May was hit by the changeover to a new mining contractor. June was better, but Pantoro said the ramp-up under the new contract is still underway.

The company also had to deal with higher ground pressure and unexpected seismic activity in the deeper parts of OK. As a result, Pantoro had to change access plans and adjust the mining sequence.

FY27 guidance fails to settle nerves

Pantoro’s FY27 guidance probably hasn’t helped sentiment either.

The company is expecting production of 90,000 to 105,000 ounces, with all-in sustaining costs (AISC) of $2,800 to $3,400 an ounce.

Pantoro said the first half of FY27 will be more about stabilising the operation as the recent changes start to flow through.

A stronger finish is expected later in the year, helped by new ore sources coming into the mine plan.

Management expects the first half to deliver 40% to 45% of annual production, with the remaining 55% to 60% coming in the second half.

Balance sheet remains a positive

The update was not all bad, though.

Pantoro said cash and gold bullion grew from $175.8 million to $223.4 million during FY26, and the company remains debt-free.

It also put around $14.8 million into an on-market share buyback, invested $54 million in exploration, and spent around $67 million on major projects capital.

Can Pantoro shares recover?

Pantoro still has a few ways to lift production at Norseman.

Green Lantern is expected to restart from the September 2026 quarter, while O’Brien’s Reef, Gladstone, Daisy South, and the Mega Resources partnership are also expected to add ore through FY27.

The debt-free balance sheet helps, but the market isn’t going to care much about extra ore sources unless production starts to improve.

Until then, Pantoro needs to show that the changes underground are actually making a difference.

The post This ASX gold stock just crashed 20%. Here’s why investors are selling appeared first on The Motley Fool Australia.

More reading

• Are these oversold ASX shares too good to pass up?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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.