Last week was a volatile one for the S&P/ASX 200 Index (ASX: XJO). A couple of very strong days were offset by a shockingly bad day to leave the benchmark index just 0.1% higher than where it started it at 7,453.3 points.
Among the worst performers on the ASX 200 last week were the shares listed below. Here’s why they tumbled lower:
Pro Medicus Limited (ASX: PME)
The Pro Medicus share price was the worst performer on the ASX 200 with a 13.3% decline. This was driven partly by a broker note out of Morgans. Its analysts downgraded the health imaging company’s shares to a reduce rating on valuation grounds. The broker believes investors should sit tight and wait for buying opportunities around the $50 mark.
Pointsbet Holdings Ltd (ASX: PBH)
The PointsBet share price wasn’t far behind with a decline of 12.2%. This follows a selloff in the tech sector after the release of hawkish minutes out of the US Federal Reserve. On Wall Street’s Nasdaq index, PointsBet’s rival Draftkings also saw its shares fall heavily over the period.
Zip Co Ltd (ASX: Z1P)
The Zip share price was a poor performer and tumbled 11.8% over the four days. As well as being caught up in the tech selloff, Morgans reduced its price target on Zip’s shares to $7.54 from $8.56. It notes that the “[BNPL] sector is suddenly unloved by investors, so solid 1H22 results are required to change sentiment.” However, it highlights that Zip’s “earnings visibility remains poor” going into February’s earnings season.
Afterpay Ltd (ASX: APT)
The Afterpay share price was out of form and tumbled 10.9% last week. While Morgans also reduced its price target on Afterpay’s shares to $91.49 from $132.00, the main drag was of course the weakness in the Block (Square) share price. As shareholders have approved the all-scrip takeover proposal from Block, the value of the transaction rises and falls with the Block share price. Unfortunately for shareholders, it has been falling a lot recently.