The S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. In afternoon trade, the benchmark index is up 0.25% to 7,433.3 points.
Four ASX shares that have failed to follow the market's lead today are listed below. Here's why they are sinking:
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A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is down almost 4% to $7.11. This follows reports that the embattled infant formula company will be hit with a second class action. In addition, this morning the team at Credit Suisse retained their underperform rating and $5.50 price target on the company's shares. The broker believes the market is mispricing A2 Milk's shares.
Eroad Ltd (ASX: ERD)
The Eroad share price has tumbled 8% to $4.85 following the release of the transportation technology services company's quarterly update. That update reveals that Eroad has downgraded its standalone revenue growth guidance for FY 2022 to 10% to 13%. Management blamed this on challenging trading conditions, particularly in North America. In that segment, the company saw a reduction in contracted units.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price has fallen 5.5% to $20.42. This decline appears to have been driven by the issue of convertible notes. This morning the travel agent confirmed that it has raised $400 million through a senior unsecured convertible notes offering maturing in 2028. Flight Centre intends to use the net proceeds to pay down existing debt and fund its growth vision into the future.
Webjet Limited (ASX: WEB)
The Webjet share price is down 3.5% to $6.27. This morning the team at Macquarie downgraded the online travel agent's shares to a neutral rating with a $6.65 price target. The broker made the move on valuation grounds following recent share price strength.
