The worst performer on the S&P/ASX 200 index on Tuesday has been the Domain Holdings Australia Ltd (ASX: DHG) share price.
The property listings company's shares are down over 6% to $2.87 in afternoon trade, but were down as much as 8% to $2.82 at one stage.
Whilst this is disappointing, it is worth noting that the Domain share price is still up 29% since the start of the year.
Why is the Domain share price sinking lower today?
Investors have been hitting the sell button on Tuesday after the company was the subject of a bearish broker note out of UBS this morning.
According to the note, the broker has downgraded Domain's shares to a sell rating from neutral and held firm with its $2.75 price target.
This price target implies potential downside of around 4% for its shares over the next 12 months following today's decline.
Why is UBS bearish on Domain?
UBS made the move largely on valuation grounds after its aforementioned strong gain in 2019.
Investors have been buying the shares of Domain and REA Group Limited (ASX: REA) this year after the housing market showed signs that a recovery could be on the cards in the near term.
However, UBS isn't a bullish on Domain's prospects. As well as believing that its shares are overvalued, the broker also notes that listings continue to be weak.
So much so, its analysts have forecast a further decline in Domain's revenue during the first half of FY 2020.
Incidentally, the broker has a neutral rating and $89.00 price target on the shares of REA Group at present. This compares to its current share price of $95.92.
Other declines.
Domain isn't the only company sinking lower on Tuesday.
Elsewhere on the S&P/ASX 200 index today, the Regis Resources Limited (ASX: RRL) share price and the Computershare Limited (ASX: CPU) share price have tumbled 3% lower.
Regis dropped lower following the release of its quarterly update and Computershare has come under pressure after announcing a CFO transition.
