Why Cochlear, NAB, Tabcorp, & Telstra shares are tumbling lower

Cochlear Limited (ASX:COH) and National Australia Bank Ltd (ASX:NAB) shares are two of four dropping lower on Wednesday. Here's why…

The S&P/ASX 200 Index (ASX: XJO) is off its lows but remains on course to finish the day in the red. At the time of writing the benchmark index is down 0.6% to 6,002.8 points.

Four shares that are falling more than most today are listed below. Here's why they are tumbling lower:

The Cochlear Limited (ASX: COH) share price is down 3% to $191.84. This may have been driven by a broker note out of UBS this morning. Its analysts are bearish on the hearing solutions company and expect it to report a sharp decline in profits later this month. It also sees risks around FY 2021 due to rising infection numbers, which could push back elective surgeries. As a result, it has retained its sell rating and $160.50 price target on its shares.

The National Australia Bank Ltd (ASX: NAB) share price is down 2% to $16.79. Weakness in the banking sector and a broker note out of Macquarie appear to be weighing on its shares today. According to the note, the broker has downgraded NAB's shares all the way from outperform to underperform with a $17.50 price target. It notes that NAB has a high weighting to the SME market, which is struggling during the pandemic.

The Tabcorp Holdings Limited (ASX: TAH) share price has dropped 3% to $3.50. This may also have been driven by a broker note out of Macquarie. This morning the broker downgraded the gambling company's shares to a neutral rating from outperform. It made the move amid concerns over the challenges facing its wagering and media businesses.

The Telstra Corporation Ltd (ASX: TLS) share price is down 1.5% to $3.43. This follows the announcement of the sale of its data centre complex in Clayton, Victoria, to Centuria Industrial REIT (ASX: CIP). According to the release, the two parties have agreed a price of $416.7 million. Telstra's CEO, Andrew Penn, notes that the sale is part of the company's T22 strategy which is cutting costs and simplifying its business. Telstra has secured a long term lease at the compex.

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 Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Cochlear Ltd. 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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