In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is defying weakness on Wall Street and is pushing higher. At the time of writing, the benchmark index is up 0.4% to 7,482 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling:
Adbri Ltd (ASX: ABC)
The Adbri share price is down 5.5% to $2.85. Investors have been selling this building products company’s shares in response to a broker note out of Morgan Stanley. According to the note, the broker has downgraded the company’s shares to an equal-weight rating with a lowered price target of $3.40.
Eroad Ltd (ASX: ERD)
The Eroad share price is down 5.5% to $2.76. This morning the transport technology company released its fourth quarter operational update. That update revealed modest 2.6% growth in contracted units to 208,697 units. Some investors may have been expecting stronger growth from Eroad.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price is down 2% to $9.49. This appears to have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has initiated coverage on the rare earths producer’s shares with a neutral rating and $9.50 price target on its shares. Goldman believes Lynas’ shares are “fully valued” at the current level. For this reason, its analysts believe Iluka Resources Limited (ASX: ILU) would be the better option for investors seeking rare earths exposure.
Perpetual Limited (ASX: PPT)
The Perpetual share price is down 2.5% to $31.38. This fund manager’s shares have come under pressure this week in response to news that Pendal Group Ltd (ASX: PDL) has rejected its takeover approach. The Perpetual share price dropped to a two-year low at one stage on Wednesday morning.