Why Accent, Careteq, Pro Medicus, and Xero shares are dropping

These ASX shares are starting the week in the red…

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A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today

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In late trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but is just falling short. At the time of writing, the benchmark index is down slightly to 7,448.9 points.

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

Accent Group Ltd (ASX: AX1)

The Accent share price is down 6% to $2.19. This morning analysts at Morgans retained their hold rating but trimmed their price target on the retailer’s shares to $2.40. According to the note, the broker believes that Accent will report a ~50% decline in earnings before interest and tax (EBIT) during the first half. In light of this, it appears to believe its shares don’t offer enough value for money at current levels to be considered a buy.

Careteq Limited (ASX: CTQ)

The Careteq share price is down 22% to 15.5 cents. This morning this assisted living technology company’s shares landed on the ASX boards following the completion of its IPO. Careteq raised $6 million at 20 cents per new share. And while the company claims to have a whopping $39 billion market opportunity, it hasn’t been enough to stop its shares from tumbling on day one.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is down 3% to $52.44. This is despite the team at Morgans upgrading the health imaging company’s shares to a hold rating just days after downgrading them to a reduce rating. However, the broker still appears to believe that investors should wait for a better entry point around the $50.00 mark.

Xero Limited (ASX: XRO)

The Xero share price is down 3% to $126.74. This follows broad weakness in the tech sector again on Monday. It isn’t just Xero shares falling hard. The S&P ASX All Technology index is down 0.8% at the time of writing. Investors appear concerned with tech valuations given the prospect for rising interest rates in the United States.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. and Xero. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. and Xero. The Motley Fool Australia has recommended Accent Group. 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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