Why A2 Milk, ASX Ltd, Galaxy, & Imugene shares are dropping today

It has been a disappointing day for these four ASX shares…

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It has been a very volatile day for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. However, in afternoon trade, things are looking positive and the index is up 0.2% to 7,294.8points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down almost 2% to $5.72. This may have been driven by a broker note out of Citi. Its analysts note that UK consumer goods company Reckitt has agreed to sell its China-based infant formula company. It believes this could be a sign that success in China will be increasingly challenging for foreign formula brands. The broker believes a2 Milk should be looking to diversify away from the market. Citi has a sell rating and $5.85 price target on the company’s shares.


The ASX share price is down 1.5% to $74.23. Today’s decline appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has downgraded this stock exchange operator’s shares to a reduce rating with a $65.87 price target. Morgans was reasonably underwhelmed with the company’s latest monthly update.

Galaxy Resources Limited (ASX: GXY)

The Galaxy share price is down 4% to $3.84. With no news out of the lithium miner, this decline may have been driven by profit taking from investors. After all, the Galaxy share price is up 67% since the start of the year even after taking today’s decline into the equation.

Imugene Limited (ASX: IMU)

The Imugene share price is down 16% to 31 cents. This is despite there being no news out of the immuno-oncology focused biopharmaceutical company. Imugene’s shares are now down by over a third since hitting a record high late last month. Despite these declines, the pre-revenue company still has a market capitalisation of ~$1.5 billion.

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James Mickleboro owns Galaxy shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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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