Why AGL, Bubs, BWP, & Origin shares are dropping lower

AGL Energy Limited (ASX:AGL) and Origin Energy Ltd (ASX:ORG) shares are two of four dropping notably lower on Thursday..

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is under pressure and dropping lower. At the time of writing, the benchmark index is down 0.65% to 6,780.4 points.

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

AGL Energy Limited (ASX: AGL)

The AGL share price has fallen 5.5% to $11.22. The catalyst for this decline was the release of an update on asset impairments this morning. According to the update, the energy company plans to recognise charges of $2,686 million (post-tax) in its first half results for FY 2021. Approximately $1,920 million of these charges relate to provisions for onerous contracts for legacy wind farm offtake agreements. Sustained weakness in wholesale electricity prices has also impacted the company.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has dropped 3% to 65 cents. Investors continue to sell the infant formula company's shares after analysts at Citi reiterated their sell rating and 51 cents price target last week. The broker was disappointed with its second quarter update and doesn't appear to believe things will improve in the near term. Citi's price target implies potential downside of almost 22%.

BWP Trust (ASX: BWP)

The BWP share price is down 3.5% to $4.07. This appears to have been driven by a broker note out of UBS this morning. According to the note, the Bunnings landlord's first half results were a touch softer than it was expecting. In light of this and its premium valuation, it sees no reason to change its sell rating and $3.86 price target any time soon.

Origin Energy Ltd (ASX: ORG)

The Origin share price is down over 6.5% to $4.63. Investors have been selling the energy company's shares after it downgraded its Energy Markets guidance for FY 2021. Management advised that this was driven by the continued impacts of COVID-19 on energy demand and milder weather. Origin now expects its Energy Markets underlying EBITDA to be in the range of $1,000 million to $1,140 million. This compares to its previous guidance of $1,150 million to $1,300 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. 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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