Why ALS, Costa, Fisher & Paykel Healthcare, & Ramsay shares are falling

Costa Group Holdings Ltd (ASX:CGC) and Fisher & Paykel Healthcare Corp Ltd (ASX:FPH) and these ASX shares are dropping on Thursday…

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has overcome a soft start and is pushing higher. At the time of writing, the benchmark index is up 0.25% to 7,109.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

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Image source: Getty Images

ALS Ltd (ASX: ALQ)

The ALS share price is down 1.5% to $12.08. This decline appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has downgraded the testing services company's shares to a hold rating with an $11.56 price target. This was made largely on valuation grounds after a strong rise.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price has crashed 22% to $3.48 following the release of its annual general meeting update. The horticulture company revealed that it is only expecting its first half performance to be marginally ahead of the prior corresponding period. This is being driven by weakness in its domestic operations and currency headwinds.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price has fallen 5.5% to $28.04. Investors have been selling the medical device company's shares following the release of its full year results. Although the company reported a 56% increase in operating revenue to NZ$1.97 billion and an 82% jump in net profit after tax to NZ$524 million, its outlook appears to have spooked investors. Management warned that things were too uncertain to provide guidance.

Ramsay Health Care Limited (ASX: RHC)

The Ramsay Health Care share price is down 2.5% to $62.81. Investors have been selling the private hospital operator's shares following the announcement of plans to acquire UK-based Spire Healthcare for approximately 1 billion pounds (A$1,822 million). Management expects the acquisition to be transformational for its UK business. Citi has responded by holding firm with its neutral rating and $67.00 price target. The broker appears uncertain whether it will achieve the synergies it is targeting.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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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