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These ASX 200 shares have been smashed in 2021

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Although the S&P/ASX 200 Index (ASX: XJO) has just climbed to an 11-month high, not all shares are faring as well.

The three ASX 200 shares listed below, for example, have fallen heavily in 2021. Here’s why they have been beaten down:

Altium Limited (ASX: ALU)

The Altium share price has fallen 12.5% since the start of 2021. Investors have been selling the electronic design software provider’s shares after it released its guidance for the first half. Altium is expecting to deliver revenue of around US$89.6 million for the half, which will be down 3% on the prior corresponding period. This soft performance has been caused by COVID-19 lockdowns, which have been impacting its sales in the United States and Europe. However, management is expecting its performance to bounce back in the second half. As a result, it has retained its full year guidance of revenue growth of 6% to 12%.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price has dropped 12.2% so far in 2021. The decline has been driven by news that SS&C Technology has withdrawn its takeover offer. In December, the NASDAQ listed global provider of investment and financial software made a conditional offer of $5.65 per share to acquire 100% of Link. While management felt the offer undervalued the company, it granted SS&C Technology due diligence. After completing its due diligence, SS&C Technology revealed it has decided to withdraw its offer.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price has been well and truly out of form and has lost 31.4% of its value since the start of the year. The medical device company’s shares were sold off following the release of a trading update. Although PolyNovo delivered a 31% increase in half year sales, this fell well short of expectations due to a weak second quarter. Bell Potter wasn’t impressed, commenting: “Polynovo announced a relatively disappointing trading update, with 1H FY21 sales growth of 31% vs the pcp well below our forecasts, consensus and management expectations.” The company may need a strong second half to win over investors and analysts again.

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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 and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd and POLYNOVO FPO. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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