Why Alliance Aviation, Brainchip, Mayne Pharma, and Perpetual Credit shares are sinking today

These shares are starting the week in the red. But why?

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Key points

  • Alliance Aviation Services shares are down 7% after downgrades following poor earnings forecasts and strategic concerns.
  • Brainchip Holdings shares fall nearly 7% due to a discounted $35 million capital raise announcement.
  • Mayne Pharma shares drop almost 4% as Cosette Pharmaceuticals files an appeal notice, creating uncertainty.

The S&P/ASX 200 Index (ASX: XJO) is starting the week on a positive note. In afternoon trade, the benchmark index is up 0.65% to 8,824.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation Services share price is down 7% to $1.35. This appears to have been driven by a couple of broker notes out of Morgans and Ord Minnett. Both brokers have downgraded this aviation services company's shares to a hold rating from buy this morning. Morgans said: "AQZ has released a disappointing trading update with FY26 NPBT expected to be ~40% below our previous forecast and consensus. The stock is now in a very tough spot – ex-growth and earnings going backwards, management changes, accounting issues, highly levered balance sheet, poor cashflow generation and deteriorating returns on capital. With AQZ's strategic review ongoing, we are hopeful of possible corporate activity (but not guaranteed). Despite the poor earnings performance, the stock continues to trade well below NTA of ~A$2.90 and aviation assets are liquid and remain in strong demand. We downgrade our rating to HOLD."

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down almost 7% to 18.2 cents. This morning, this struggling semiconductor company announced a fully underwritten $35 million placement to professional and sophisticated investors. These funds are being raised at a 10.3% discount of 17.5 cents per new share. Brainchip's CEO, Sean Hehir, said: "This capital raise positions BrainChip to accelerate our leadership in edge AI and neuromorphic computing. With Akida 2.0 and our expanding product portfolio, we are unlocking new commercial opportunities in high-growth sectors and driving scalable innovation. Investor support enables us to execute with confidence and deliver long-term value through transformative, on-device intelligence."

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down almost 4% to $4.72. This has been driven by news that the pharmaceutical company has received a notice of intention to appeal by Cosette Pharmaceuticals. This relates to last month's judgement in the Supreme Court of New South Wales, which found in favour of Mayne Pharma and dismissed Cosette's request to cancel its takeover offer. Mayne Pharma notes that the notice of intention does not include any reasons for Cosette's intention to appeal.

Perpetual Credit Income Trust (ASX: PCI)

The Perpetual Credit Income Trust share price is down over 6% to $1.13. This has been driven by news that the income trust intends to raise up to ~$267 million via a 1 for 2 pro-rata non-renounceable entitlement offer to eligible unitholders and a shortfall offer. The proceeds are intended to be used to enable the investment manager to actively pursue additional investments in accordance with its current investment strategy and objective.

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 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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