The S&P/ASX 200 Index (ASX: XJO) is out of form on Wednesday and trading lower. At the time of writing, the benchmark index is down 0.5% to 8,547.1 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is down almost 4% to $7.33. This appears to have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded this infant formula company's shares to a neutral rating with an $8.20 price target. Citi has concerns over weak Chinese import volumes and a profit warning from a rival. In light of this, the broker is feeling cautious ahead of next month's full year results release.
Boss Energy Ltd (ASX: BOE)
The Boss Energy share price is down 8% to $3.64. This also appears to have been driven by a broker note. According to a note out of Ord Minnett, its analysts have downgraded this uranium miner's shares to a hold rating with a $4.10 price target. Ord Minnett made the move on valuation grounds after its shares rallied strongly since April. In addition, it highlights that the stronger Australian dollar could be a headwind. Though, the company stands to benefit from higher U3O8 spot prices.
Evolution Mining Ltd (ASX: EVN)
The Evolution Mining share price is down over 6% to $7.32. This has been driven by broad weakness in the gold sector today after safe haven demand dropped. This has led to the S&P/ASX All Ordinaries Gold index dropping almost 5% this afternoon. In addition, the company was the subject of a bearish broker note out of Goldman Sachs. According to the note, the broker has downgraded its shares to a sell rating. It has concerns over its valuation and subdued production growth outlook. In respect to the latter, the broker expects production to be largely flat over the next couple of years.
Lifestyle Communities Ltd (ASX: LIC)
The Lifestyle Communities share price is down 38% to $4.40. This retirement communities company's shares are under significant pressure today after being directed to scrap certain exit fees following a ruling by the Victorian Civil and Administrative Tribunal (VCAT). The tribunal ruled that the company had been charging some residents significant exit fees, known as deferred management fees (DMF), without adequate disclosure. Lifestyle Communities intends to appeal the decision.
