Why Costa, Domino’s, EML, and Novonix shares are dropping

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on track to start the week with a disappointing decline. At the time of writing, the benchmark index is down 1.05% to 6,608.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Costa Group Holdings Ltd (ASX: CGC)

The Costa price is down 13% to $2.50. This follows the release of a broker note out of Credit Suisse and a trading update. In respect to the former, 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. As for the latter, Costa warned that there are quality issues across its citrus portfolio.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down 5.5% to $71.25. This appears to have been driven by a bearish note out of Goldman Sachs. Its analysts have 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.

EML Payments Ltd (ASX: EML)

The EML share price has crashed 22% to 99.2 cents. This morning the payments company announced the surprise exit of its long-serving CEO, Tom Cregan, with immediate effect. EML has appointed Emma Shand as its new managing director and CEO. She has been a director at the company since last year.

Novonix Ltd (ASX: NVX)

The Novonix share price is down 10.5% to $2.20. Investors have been selling this battery technology company’s shares following the release of a broker note out of Morgans. It said: “The market is pricing in risk much more aggressively and NVX has not yet proven the viability of its anode business with blue chip clients at scale. We have therefore reduced our target price to $2.98 (-39%) with a higher assumed cost of equity and a later assumed ramp up of production.”

The post Why Costa, Domino’s, EML, and Novonix shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Domino’s share price drops 5% on bearish broker note
• Novonix share price sinks 8% following ‘gun shy’ broker note
• Why is the Costa share price sinking 12% to a two-year low?
• ASX 200 midday update: EML crashes amid CEO exit, Costa and Domino’s sink on broker downgrades

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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