Why Blackmores, Lake Resources, St Barbara, and Zip shares are dropping

These ASX shares are being hit hard on Wednesday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 6,516.8 points.

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

Blackmores Limited (ASX: BKL)

The Blackmores share price is down over 8% to $65.48. This appears to have been driven by a broker note out of Morgans. This morning the broker retained its hold rating but cut its price target on the health supplements company’s shares by 20% to $70.50. Morgans believes Blackmores has been having a tough time in the second half. It also expects the company to fall well short of its FY 2024 targets.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down a further 12% to 85 cents. As well as being under pressure due to the sudden exit of its CEO, weakness in the lithium industry has been weighing on its shares today. This appears to have been driven by concerns over Germany backtracking on plans to ban petrol and diesel cars by 2035. This was expected to give electric vehicles (and lithium) demand a major boost.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down over 16% to 94.5 cents. Investors have been selling this gold miner’s shares after it revealed that it has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review. St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 7% to 48.5 cents. This buy now pay later provider’s shares have come under heavy selling pressure this week amid speculation it could be about to give up on the UK and US markets. This is due to the large losses the company is making internationally.

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. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Blackmores Limited. 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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