The S&P/ASX 200 Index (ASX: XJO) is having a tough start to the week. In afternoon trade, the benchmark index is down 0.35% to 8,476.3 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are starting the week in the red:
Adairs Ltd (ASX: ADH)
The Adairs share price is down 18% to $2.11. The catalyst for this has been the release of the furniture and homewares retailer's trading update this morning. Although group sales are expected to be a record of between $614 million and $618 million, things are not as positive for its earnings. Group underlying EBIT is forecast to be between $53.5 million and $57 million for the year. This is down from $57.6 million during FY 2024's 53-week period. This reflects elevated promotional activity, which has adversely impacted gross margins.
ANZ Group Holdings Ltd (ASX: ANZ)
The ANZ share price is down 1.5% to $28.00. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the banking giant's shares to a sell rating and cut the price target on them to $26.50. UBS believes that the bank's new CEO will be wanting to build a stronger CET1 ratio. It thinks this will be at the expense of earnings growth and has therefore cut its estimates for the coming years.
Aurelia Metals Ltd (ASX: AMI)
The Aurelia Metals share price is down 25% to 23 cents. Investors have been selling this gold miner's shares after it released its guidance for FY 2026 and its aspirational outlook for the following two years. Aurelia Metals is forecasting a mixed three years for gold production with higher than expected costs. Macquarie responded to the update, commenting: "While AMI can be applauded for providing a detailed level of disclosure, perhaps the market has penalised it for its transparency. Although positive FCF generation has been deferred to FY28 due to organic investments, its strong balance sheet (A$107m cash) differentiates it to peers." It retains its outperform rating with a reduced price target of 25 cents.
Pilbara Minerals Ltd (ASX: PLS)
The Pilbara Minerals share price is down 2% to $1.21. This is likely to have been driven partly by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded its shares to a sell rating with a heavily reduced price target of $1.10. The broker made the move after downgrading its lithium forecasts through to 2027.
