Why Brazilian Rare Earths, Carnarvon Energy, Computershare, and Novonix shares are falling today

These shares are under pressure on Tuesday. But why?

| More on:
Man with a hand on his head looks at a red stock market chart showing a falling share price.

Image source: Getty Images

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 afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.4% to 8,381.8 points.

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

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is down 5% to $2.28. This follows the release of a drilling update from the Monte Alto project. Although the company reported record rare earths grades, it appears to have fallen short of what some investors were expecting. The company's CEO and Managing Director, Bernardo da Veiga, was pleased with the results. He said: "Less than a year ago, we announced the first drill 'discovery' of ultra-high-grade REE-Nb-Sc-Ta-U mineralisation at Monte Alto. Today, we are pleased to report new drilling results that include some of the highest grades ever reported globally, including exceptional rare earths grades of up to 45.7% TREO. These outstanding drilling results confirm Monte Alto's position as one of the highest grade rare earths and critical minerals projects in the world."

Carnarvon Energy Ltd (ASX: CVN)

The Carnarvon Energy share price is down 23% to 12 cents. This morning, this energy explorer released an update on the Dorado Phase 1 liquids development, offshore Western Australia. According to the release, the Dorado joint venture operator has decided not to purchase the Floating Production Storage and Offloading (FPSO) vessel that had been identified as an option for the Dorado Phase 1 liquids development project. The Operator has also decided to not enter Front End Engineering and Design (FEED) at this stage.

Computershare Ltd (ASX: CPU)

The Computershare share price is down 2% to $33.48. This appears to have been driven by a broker note out of Citi. According to the note, the broker has downgraded the stock transfer company's shares to a neutral rating with an improved price target of $35.00. It made the move on valuation grounds. Analysts at Morgans made a similar move on Monday, downgrading its shares to hold rating with a $34.43 price target.

Novonix Ltd (ASX: NVX)

The Novonix share price is down 6% to 61 cents. This morning, this battery materials and technology company shocked investors by announcing the sudden exit of its CEO. According to the release, Dr. Chris Burns is stepping down as CEO at the end of the week on 24 January and will be replaced by CFO Robert Long on an interim basis. Commenting on the exit, Novonix Chairman, Admiral Robert J Natter, said: "The Board of Directors would like to thank Dr. Burns for his exceptional leadership and dedication in what has been a dynamic market environment. The Board has great confidence in Mr Long's ability to continue this strong leadership during the transition period."

Citigroup is an advertising partner of Motley Fool Money. 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.

More on Share Market News

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Share Gainers

4 ASX 200 shares racing ahead of the benchmark this week

ASX investors sent these four stocks soaring 12% to 18% this week. But why?

Read more »

A young man sits at his desk working on his laptop with a big smile on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dateline, DroneShield, Ora Banda, and Pilbara Minerals shares are dropping today

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

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why BHP, Coronado Global, EBR Systems, and Whitehaven Coal shares are pushing higher today

These shares are ending the week on a positive note. Let's find out why.

Read more »

man thinking about whether to invest in bitcoin
Broker Notes

Why Macquarie expects this ASX 200 dividend stock to keep outperforming

Macquarie has tipped this ASX 200 dividend stock to outperform. Let’s find out why.

Read more »

a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.
BNPL shares

Up 87% since April, why the Zip share price can keep flying higher into 2026

A leading fund manager expects more outsized gains from Zip shares ahead.

Read more »

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price
Share Market News

Why BHP and these ASX dividend stocks are buys

The mining giant and these shares have been named as buys by brokers.

Read more »