In late morning trade the S&P/ASX 200 Index (ASX: XJO) has rebounded from yesterday’s decline and is on course to record a solid gain. At the time of writing the benchmark index is up 0.75% to 5,965.5 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The GWA Group Ltd (ASX: GWA) share price is down 3% to $2.57. This appears to have been driven by a broker note out of the Macquarie equities desk this morning. According to the note, the broker has retained its neutral rating but slashed the price target on the household products company’s shares to $2.90. It made the move after adjusting its estimates to reflect current housing activity.
The Meridian Energy Ltd (ASX: MEZ) share price has sunk 9% lower to $4.45. Investors have been selling the renewable energy company’s shares after Rio Tinto Limited (ASX: RIO) gave notice that it will be winding down the Tiwai Point Aluminium Smelter. As a result, the mining giant will be terminating its contract with Meridian Energy on 31 August 2021.
The Treasury Wine Estates Ltd (ASX: TWE) share price is down 2.5% to $11.02. This morning the wine giant provided the market with an update on its performance in FY 2020. Management advised that it expects its earnings before interest, tax and the agricultural accounting standard SGARA (EBITS) to be between $530 million and $540 million in FY 2020. This will be an 18.5% to 20% decline on FY 2019’s EBITS of $662.7 million. This reflects the impact of the COVID-19 pandemic, which has had a significant impact on its trading performance across all geographies throughout the second half.
The WiseTech Global Ltd (ASX: WTC) share price has fallen 2% to $21.13. Investors have been selling the logistics solutions company’s shares after analysts at Ord Minnett downgraded them to a lighten rating with a $19.60 price target. The broker believes the market is expecting too much from WiseTech in FY 2021 and expects it to fall short of consensus estimates.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of WiseTech Global. 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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