ASX 200 midday update: EML crashes amid CEO exit, Costa and Domino’s sink on broker downgrades

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week in the red. The benchmark index is currently down 0.5% to 6,643.5 points.

Here’s what is happening on the ASX 200 today:

EML shares crash on surprise CEO exit

The EML Payments Ltd (ASX: EML) share price has crashed to a multi-year low on Monday. This follows the surprise exit of its CEO, Tom Cregan, with immediate effect. EML Payments also noted that Cregan will receive his contractual entitlements but no termination benefits will be provided. EML has appointed Emma Shand as its new managing director and CEO. She has been a director at the company since last year.

Costa share price tumbles

The Costa Group Holdings Ltd (ASX: CGC) share price is also falling heavily on Monday. This appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has downgraded the horticulture company’s shares to a neutral rating and slashed the price target on them by 24% to $2.80. The broker made the move after revising its earnings estimates lower to reflect weaker avocado prices, a poor citrus season, and supply chain headwinds.

Domino’s falls on broker downgrade

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is trading lower today. This appears to have been driven by a bearish note out of Goldman Sachs. According to the release, the broker has downgraded the pizza chain operator’s shares to a sell rating and cut the price target on them to $59.20. Goldman believes the company will fall short of consensus earnings estimates.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the New Hope Corporation Limited (ASX: NHC) share price with a gain of 3% on no news. Going the other way, the worst performer has been the EML share price with a 20% decline. This follows the shock exit of its long-serving CEO this morning.

The post ASX 200 midday update: EML crashes amid CEO exit, Costa and Domino’s sink on broker downgrades appeared first on The Motley Fool Australia.

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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. has positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended COSTA GRP FPO and Dominos Pizza Enterprises Limited. 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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