The Australian share market may have been pushing higher recently, but not all shares have fared so well.
Two ASX shares that have just hit 52-week lows are listed below. Here’s why they are down in the dumps:
Adore Beauty Group Ltd (ASX: ABY)
The Adore Beauty share price dropped to a 52-week low of $4.59 on Tuesday. This means the online beauty retailer’s shares are now down 32% from their IPO price of $6.75.
Investors have been heading to the exits despite Adore Beauty smashing expectations during the first half of FY 2021. For the six months ended 31 December, the company delivered revenue of $96.2 million and EBITDA of $5.2 million. This was up 85% and 188%, respectively, over the prior corresponding period. It was also ahead of its prospectus guidance for revenue of $89 million and EBITDA of $3.3 million.
The catalyst for the selling has been rising bond yields, which has put significant pressure on growth shares. This is because as the risk-free rate rises, the premium that investors are prepared to pay for shares reduces. Though, one broker that sees this share price weakness as a buying opportunity is UBS. Late last month it upgraded Adore Beauty’s shares to a buy rating with a $6.20 price target.
Nuix Limited (ASX: NXL)
The Nuix share price hit a 52-week low of $4.63 on Monday. This means the leading investigative analytics and intelligence software provider’s shares have now fallen 61% from their 52-week high and are trading below their IPO price of $5.31 per share.
Investors have been selling Nuix shares following the release of its disappointing half year results last month. The company fell short of expectations during the half, despite listing on the market just a few weeks before the end of it on 4 December. And while management has just defended its performance and reaffirmed its guidance for the full year, this hasn’t been enough to stop the Nuix share price from continuing its slide.
Morgan Stanley remains positive on the company and has an overweight rating and $10.75 price target on its shares.
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More reading
- One person earned $250,000 on Airtasker last year. Now it’s listing
- Here’s why the Nuix (ASX:NXL) share price is storming 5% higher today
- Nuix (ASX:NXL) share price hits all-time low: Time to buy?
- The Nuix (ASX:NXL) share price has a lot of ground to make up in FY21
- Top brokers name 3 ASX shares to buy next week
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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