In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is defying weakness on Wall Street and is pushing higher. At the time of writing, the benchmark index is up 0.4% to 7,482 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling:
Adbri Ltd (ASX: ABC)
The Adbri share price is down 5.5% to $2.85. Investors have been selling this building products company’s shares in response to a broker note out of Morgan Stanley. According to the note, the broker has downgraded the company’s shares to an equal-weight rating with a lowered price target of $3.40.
Eroad Ltd (ASX: ERD)
The Eroad share price is down 5.5% to $2.76. This morning the transport technology company released its fourth quarter operational update. That update revealed modest 2.6% growth in contracted units to 208,697 units. Some investors may have been expecting stronger growth from Eroad.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price is down 2% to $9.49. This appears to have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has initiated coverage on the rare earths producer’s shares with a neutral rating and $9.50 price target on its shares. Goldman believes Lynas’ shares are “fully valued” at the current level. For this reason, its analysts believe Iluka Resources Limited (ASX: ILU) would be the better option for investors seeking rare earths exposure.
Perpetual Limited (ASX: PPT)
The Perpetual share price is down 2.5% to $31.38. This fund manager’s shares have come under pressure this week in response to news that Pendal Group Ltd (ASX: PDL) has rejected its takeover approach. The Perpetual share price dropped to a two-year low at one stage on Wednesday morning.
The post Why Adbri, Eroad, Lynas, and Perpetual shares are tumbling appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: AVZ and EML shares jump
- Top broker warns this ASX 200 share may be next to issue a profit warning
- Should you buy Iluka or Lynas shares for rare earths exposure?
- ASX 200 midday update: Pendal rejects takeover offer, Mineral Resources rises on broker upgrade
- Lynas share price lifts amid record quarterly result
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EROAD Limited. The Motley Fool Australia owns and has recommended EROAD Limited. 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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