In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is out of form and on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.05% to 7,755.6 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
Cettire Ltd (ASX: CTT)
The Cettire share price is down 4% to $1.07. Investors continue to sell this online luxury products retailer after it warned that “the operating environment within global online luxury has become more challenging” with heightened levels of discounting. Not even a bullish broker note out of Bell Potter has been able to stop Cettire’s shares from hitting a new 52-week low today. Its analysts have retained their buy rating with a reduced price target of $2.60. This is more than double where the embattled company’s shares are currently trading.
Collins Foods Ltd (ASX: CKF)
The Collins Foods share price is down 7% to $9.27. This morning, analysts at Citi responded to the quick service restaurant operator’s FY 2024 results by retaining their sell rating and $10.60 price target. Its analysts highlight that the company is currently battling with some challenging market conditions. It was also disappointed to see that management no longer expects margin improvements in the new financial year. Instead, its margins are likely to soften.
Liontown Resources Ltd (ASX: LTR)
The Liontown Resources share price is down 5% to 85.2 cents. This appears to have been driven by broad weakness in the lithium industry today. Investors have been selling lithium stocks after the price of the battery making ingredient continued to fall. In addition, analysts at Barrenjoey are feeling bearish about Liontown Resources. According to a note, this morning the broker has downgraded the lithium developer’s shares to an underweight rating. Liontown Resources’ shares hit a multi-year low today.
Northern Star Resources Ltd (ASX: NST)
The Northern Star Resources share price is down 3% to $12.97. This may have been driven by the release of inflation data in Australia and Canada. Locally, our inflation was stronger than expected in May. Whereas over in Canada, it reported an increase in inflation after cutting interest rates. Investors may believe this is going to lead to the Reserve Bank of Australia and the US Federal Reserve pushing back their interest rate cut plans. This could be bad news for the gold price.
The post Why Cettire, Collins Foods, Liontown, and Northern Star shares are dropping today appeared first on The Motley Fool Australia.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire and Collins Foods. 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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