These ASX shares aren’t having a great start to the new financial year…
The post Why Lendlease, Marley Spoon, Reece, & Woolworths shares are sinking appeared first on The Motley Fool Australia. –
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is under pressure and tumbling lower. At the time of writing, the benchmark index is down 0.5% to 7,274.2 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
Lendlease Group (ASX: LLC)
The Lendlease share price is down 3% to $11.11 following the release of a market update. This morning the international property and infrastructure company downgraded its guidance due to a resurgence in COVID-19 in key markets which has negatively impacted its performance. Lendlease is now expecting a core operating profit of between $375 million and $410 million after tax for FY 2021.
Marley Spoon AG (ASX: MMM)
The Marley Spoon share price has fallen almost 5% to $3.01. This decline could be due to profit taking after the meal kit delivery company’s shares rocketed higher recently. In other news, this morning the company signed and closed a committed senior secured credit facility of four years with Runway Growth Credit Fund. The release notes that the facility will give Marley Spoon access to up to US$65 million to support it with its growth strategy.
Reece Ltd (ASX: REH)
The Reece share price is down over 3% to $22.81. The catalyst for this appears to have been a broker note out of Macquarie. According to the note, the broker has downgraded this plumbing parts company’s shares to an underperform rating with a $19.40 price target. The broker made the move on valuation grounds following a very strong gain since the start of the year.
Woolworths Group Ltd (ASX: WOW)
The Woolworths share price has fallen 2% to $37.44. This also appears to have been driven by a broker note. According to a note out of Credit Suisse, its analysts have downgraded the supermarket operator’s shares to an underperform rating with a $32.92 price target. Once again, this was due to valuation concerns. Credit Suisse notes that Woolworths’ shares trade at a significant premium to rival Coles Group Ltd (ASX: COL).
The post Why Lendlease, Marley Spoon, Reece, & Woolworths shares are sinking 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Marley Spoon AG. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.