The S&P/ASX 200 Index (ASX: XJO) is on form on Wednesday and charging higher. At the time of writing, the benchmark index is up 0.5% to 7,014.2 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:
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BWX Ltd (ASX: BWX)
The BWX share price is down 3.5% to $4.94. This is despite there being no news out of the personal care products company today. However, prior to today, the BWX share price was up 23% since the start of the year. This could have led to some investors taking a bit of profit off the table today.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price has fallen over 1% to $20.14. The catalyst for this decline appears to be a broker note out of Goldman Sachs this morning. According to the note, the broker has downgraded the iron ore producer's shares to a sell rating with a reduced price target of $18.90. Goldman notes that that Fortescue's shares are changing hands at 1.4x net asset value (NAV). This compares unfavourably to BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), which are trading at 0.95x NAV.
Webjet Limited (ASX: WEB)
The Webjet share price is down 2.5% to $5.17. On Tuesday analysts at Morgans put a hold rating and $4.92 price target on the online travel agent's shares. It was surprised that Webjet has raised capital for a third time since COVID-19 began. And while it notes that the capital raising has reduced its refinancing risk, it doesn't see enough value in its shares at this level to rate it as a buy.
Zip Co Ltd (ASX: Z1P)
The Zip share price has given back its morning gains and is down 1.5% to $9.59. While most brokers have responded positively to Zip's strong third quarter update, one broker has held firm with its bearish stance. This morning UBS retained its sell rating and lifted its price target slightly to $6.50. This implies potential downside of 32% over the next 12 months.
