Nearmap Ltd (ASX:NEA) and Pro Medicus Limited (ASX:PME) are two of four ASX shares dropping notably lower on Friday…
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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. In afternoon trade, the benchmark index is up 0.3% to 7,083.9 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:
CSR Limited (ASX: CSR)
The CSR share price is down 3.5% to $5.88. This decline appears to have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded the building materials company’s shares to a hold rating with a $5.50 price target. It made the move on valuation grounds following some strong gains.
Fonterra Shareholders’ Fund (ASX: FSF)
The Fonterra share price is down 4.5% to $4.05. This morning the dairy company’s shares returned from a trading halt after announcing the start of a consultation process. This process is seeking farmer feedback on potential options to change its capital structure. These changes could give farmers greater financial flexibility.
Nearmap Ltd (ASX: NEA)
The Nearmap share price has continued its slide and is down a further 5% to $1.72. Investors have been selling the aerial imagery technology and location data company’s shares this week after it was hit with legal proceedings. The company advised that rival Eagle View alleges patent infringement in relation to its roof estimation technology. Nearmap has denied any infringement and will defend the complaint.
Pro Medicus Limited (ASX: PME)
The Pro Medicus share price has dropped 6.5% to $42.89. This is despite there being no news out of the healthcare technology company. However, with a number of shares on high PE ratios coming under pressure, it isn’t overly surprising to see Pro Medicus trading lower. After all, its shares are currently changing hands for ~130x estimated FY 2021 earnings.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. and Pro Medicus Ltd. 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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