After a strong start to the day, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has given back its gains but is still higher by just under 0.1% at 6,076 points.
Four shares that haven’t been able to follow the market higher today are listed below. Here’s why they have started the week in the red:
The Carsales.Com Ltd (ASX: CAR) share price is down 2% to $14.06. Last week Credit Suisse downgraded the car listings company to an underperform rating largely on valuation grounds. The broker felt that the growth the market had built into its share price was overly ambitious. I agree with Credit Suisse, I think 29x trailing earnings is expensive given its current growth profile.
The Nextdc Ltd (ASX: NXT) share price has fallen 4% to $5.71 after Deutsche Bank downgraded the data centre operator to a hold rating with a $5.50 price target. Much like Carsales, the broker believes that NEXTDC’s shares have become expensive now after a strong run over the last 12 months. While I agree that they are expensive, I still think NEXTDC is one of the best long-term buy and hold investment options around.
The Pushpay Holdings Ltd (ASX: PPH) share price has dropped 3% to $3.69 despite there being no news out of the payment solutions company. Pushpay’s shares have been on a tear in recent weeks following the release of a couple of business updates which revealed strong growth in annualised committed monthly revenue. This could mean traders are taking profit today.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is down 2% to $6.64. Today’s decline is likely to be related to a rise in bond yields. This has led a number of “bond proxies” like Sydney Airport, Transurban Group (ASX: TCL), and Auckland International Airport Limited (ASX: AIA) to sink into the red.