In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.6% to 7,185.8 points.
Four ASX shares that are falling more than most today are listed below. Hereâs why they are dropping:
Core Lithium Ltd (ASX: CXO)
The Core Lithium share price is down almost 8% to $1.21. This decline appears to have been triggered by a bearish broker note out of Goldman Sachs. This morning the broker initiated coverage on the lithium developer with a sell rating and $1.00 price target. Goldman highlights that the Core Lithium share price is trading at a premium to peers and on low forecast free cash flow multiples.
Downer EDI Ltd (ASX: DOW)
The Downer share price is down a massive 22% to $3.75. Investors have been hitting the sell button after the engineering and construction company identified certain accounting irregularities in its Australian Utilities business. The irregularities are estimated to result in a historical overstatement of pre-tax earnings in the order of $30 million to $40 million at the end of November.
Link Administration Holdings Ltd (ASX: LNK)
The Link share price is down 4% to $3.25. This has been driven by an update on Dye & Durhamâs proposal to acquire Linkâs Corporate Markets business and all of the BCM business for $1.27 billion. Management advised that the conditional non-binding proposal has not been able to be progressed to a transaction that is certain, has committed financing, reflects appropriate value, and is on appropriate terms. As a result, talks have now ended.
Renascor Resources Ltd (ASX: RNU)
The Renascor share price is down 6% to 30 cents. This morning this battery materials developer announced the completion of a $70 million institutional placement. These funds were raised at a 14% discount of 27.5 cents per share. The proceeds from the placement will be used to progress the development of the Siviour Battery Anode Material (BAM) project.
The post Why Core Lithium, Downer, Link, and Renascor shares are dropping today appeared first on The Motley Fool Australia.
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More reading
- Why is the Downer share price sinking 20% on Thursday?
- Why is the Renascor Resources share price sinking 8% on Thursday?
- Why is the Link share price crashing 10% on Thursday?
- Core Lithium share price falls after being hit with sell rating from Goldman Sachs
- Here’s the lithium price forecast through to 2025
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 Link Administration. 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.
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