These were the worst performing ASX 200 shares last week

These were the worst performers on the ASX 200 last week…

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A man in a suit face palms at the downturn happening with shares today.

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The S&P/ASX 200 Index (ASX: XJO) was on form again last week and recorded its third successive weekly gain. The benchmark index rose 0.8% over the period to end it at 7,238.8 points.

Unfortunately, not all shares climbed with the market. Here’s why these were the worst performers on the ASX 200 last week:

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price was the worst performer on the ASX 200 last week with a 16.5% decline. Investors were selling lithium shares amid concerns over the outlook for lithium prices. This followed a bearish note out of Goldman Sachs, which reiterated its belief that lithium prices will fall heavily in the coming years, and news that Chinese electric vehicle company BYD is looking to buy six lithium mines in African. BYD expects the mines to produce 1 million tonnes of lithium carbonate each year. That would be enough to build at least 27.78 million electric vehicles, which covers the automaker’s expected demand for the next decade.

Allkem Ltd (ASX: AKE)

The Allkem share price wasn’t far behind with a weekly decline of 15.4%. This was driven by the same news above. In addition, analysts at Credit Suisse downgraded its shares from an outperform rating to a neutral rating and cut the price target on them to $14.70. Credit Suisse expects lithium supply to meet demand in the next couple of years before falling into a surplus in 2025.

Healius Ltd (ASX: HLS)

The Healius share price was out of form and dropped 10.6% last week. The majority of this decline came on Friday following the release of the healthcare company’s trading update. That update revealed that trading conditions have been tough in the second half. As a result, during the first five months of the half, Healius has generated just under $100 million of EBIT. This brought its year-to-date EBIT to $473 million. As a comparison, Goldman Sachs has been forecasting EBIT of $563.3 million in FY 2022. Healius looks unlikely to achieve this.

Imugene Limited (ASX: IMU)

The Imugene share price continued its slide last week and dropped 10.5% over the period. This means that the biotech company’s shares are now down 60% since the start of the year. Valuation concerns continue to weigh on its shares.

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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