Why GWA, Meridian Energy, Treasury Wine, & WiseTech Global are dropping lower

Treasury Wine Estates Ltd (ASX:TWE) and WiseTech Global Ltd (ASX:WTC) shares are two of four dropping lower on Thursday. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In late morning trade the S&P/ASX 200 Index (ASX: XJO) has rebounded from yesterday's decline and is on course to record a solid gain. At the time of writing the benchmark index is up 0.75% to 5,965.5 points.

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

The GWA Group Ltd (ASX: GWA) share price is down 3% to $2.57. This appears to have been driven by a broker note out of the Macquarie equities desk this morning. According to the note, the broker has retained its neutral rating but slashed the price target on the household products company's shares to $2.90. It made the move after adjusting its estimates to reflect current housing activity.

The Meridian Energy Ltd (ASX: MEZ) share price has sunk 9% lower to $4.45. Investors have been selling the renewable energy company's shares after Rio Tinto Limited (ASX: RIO) gave notice that it will be winding down the Tiwai Point Aluminium Smelter. As a result, the mining giant will be terminating its contract with Meridian Energy on 31 August 2021.

The Treasury Wine Estates Ltd (ASX: TWE) share price is down 2.5% to $11.02. This morning the wine giant provided the market with an update on its performance in FY 2020. Management advised that it expects its earnings before interest, tax and the agricultural accounting standard SGARA (EBITS) to be between $530 million and $540 million in FY 2020. This will be an 18.5% to 20% decline on FY 2019's EBITS of $662.7 million. This reflects the impact of the COVID-19 pandemic, which has had a significant impact on its trading performance across all geographies throughout the second half.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 2% to $21.13. Investors have been selling the logistics solutions company's shares after analysts at Ord Minnett downgraded them to a lighten rating with a $19.60 price target. The broker believes the market is expecting too much from WiseTech in FY 2021 and expects it to fall short of consensus estimates.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

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

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

A smartly-dressed man screams to the sky in a trendy office.
Share Fallers

Why Appen, DroneShield, PWR, and Webjet shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »

a car driver sits up and looks alert with wide eyes and an expression of concentration while he holds the wheel of a car.
Share Fallers

Why this ASX All Ordinaries stock just crashed 24%!

Investors are punishing the ASX All Ords company today. Let’s find out why.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Elders, KMD, Lovisa, and Telix shares are dropping today

These shares are missing out on the good times on Tuesday. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Life360, Lovisa, NAB, and Resolute shares are falling today

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

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »