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Why Domino’s, Integrated Research, NIB, & Perpetual shares tumbled lower today

ASX Share Down

In afternoon trade the S&P/ASX 200 index has fought back from its late morning decline and is back into positive territory. At the time of writing the benchmark index is up almost 0.1% to 6,657 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they have tumbled lower:

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has dropped 3.5% to $38.93. Today’s decline appears to have been caused by a broker note out of Morgans this morning. Although the broker held firm with its hold rating, it slashed the price target on the pizza chain operator’s shares to $44.89. Morgans believes there is a risk that the company will fall short of its guidance in FY 2019.

The Integrated Research Limited (ASX: IRI) share price has continued its slide and is down a further 4.5% to $2.78. The leading global provider of proactive performance management software for critical IT infrastructure, payments and communications ecosystems has come under pressure this week following the release of its full year profit guidance. Although it expects to deliver record revenue and profits, its guidance implies a slowdown in its profit growth in the second half.

The NIB Holdings Limited (ASX: NHF) share price has tumbled over 3.5% to $7.66 after being downgraded by two leading brokers this morning. Analysts at both Goldman Sachs and Citi have downgraded the private health insurer’s shares to a sell rating. These downgrades have been made largely on valuation grounds after a stellar share price rally in 2019.

The Perpetual Limited (ASX: PPT) share price has dropped 6% to $39.31 a day after the release of its latest FUM update. One broker that wasn’t overly impressed with what it saw was Citi. This morning it retained its neutral rating but cut the price target on its shares to $39.50 following adjustments to its earnings forecasts.

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Returns as of 6th October 2020

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 Integrated Research Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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