Why Harvey Norman, Mirvac, Qube, and Suncorp shares are falling today

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

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Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.

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Key points

  • Harvey Norman shares dip 1.5% to $6.87 following a downgrade to neutral by UBS, which cited valuation concerns after a strong year, reducing the price target to $7.50.
  • Mirvac shares slide nearly 1.5% to $2.16 as higher-than-expected Australian inflation data suggests interest rate cuts are likely over, impacting real estate market sentiment.
  • Suncorp drops 3% to $17.64 after forecasting $350 million in costs due to recent severe weather events, prompting Citi to reduce its price target from $22.10 to $19.25 while retaining a neutral rating.

The S&P/ASX 200 Index (ASX: XJO) is having a relatively positive finish to the week. In afternoon trade, the benchmark index is up 0.1% to 8,618.1 points.

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

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is down 1.5% to $6.87. Investors have been selling this retailer's shares again on Friday. The latest catalyst appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded Harvey Norman's shares to a neutral rating with a reduced price target of $7.50. It made the move on valuation grounds after a strong gain this year left its shares trading at what it believes is fair value.

Mirvac Group (ASX: MGR)

The Mirvac share price is down almost 1.5% to $2.16. It is one of a number of ASX 200 real estate shares that are under pressure on Friday. This appears to have been driven by the release of Australian inflation data, which came in higher than expected. As a result, the market now believes that interest rate cuts are over and the next move could be higher by the Reserve Bank of Australia. This could put pressure on the real estate sector.

Qube Holdings Ltd (ASX: QUB)

The Qube Holdings share price is down 3.5% to $4.80. This may have been driven by profit taking from some investors following strong gains this week. The logistics solutions company's shares surged thanks to the receipt of takeover offer from Macquarie Group Ltd (ASX: MQG). The Macquarie Asset Management (MAM) business has offered $5.20 per share for Qube. In response, the company's chair, John Bevan, said: "The proposal from Macquarie Asset Management is a reflection of the strength of Qube's business model and our assets, and the quality of our people and culture. We look forward to continuing to engage constructively in the best interests of our shareholders."

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down 3% to $17.64. On Thursday, this insurance giant revealed that supercell thunderstorms in south-east Queensland and parts of northern New South Wales were expected to cost Suncorp $350 million, having reached the reinsurance maximum event retention. This morning, according to a note out of Citi, its analysts have retained their neutral rating but cut their price target on its shares from $22.10 to $19.25.

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Macquarie Group. 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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