On Wednesday afternoon, the S&P/ASX 200 Index struggled significantly, poised to register a notable decline. As of this writing, the benchmark index has dropped by 1.05% to 7,755.6 points. Here are three ASX shares that are experiencing steeper declines than most today and the reasons behind their drops:
Cettire Ltd (ASX: CTT)
Cettire's share price has fallen by 4% to $1.07. Investors are continuing to offload shares of this online luxury products retailer following the company's warning about a challenging operating environment within the global online luxury market, marked by increased discounting. Despite a bullish broker note from Bell Potter, which retained a buy rating but lowered the price target to $2.60, Cettire's shares hit a new 52-week low today. This reduced price target is still more than double the current trading price, highlighting the significant pressure the company is under.
Collins Foods Ltd (ASX: CKF)
Shares of Collins Foods have dropped by 7% to $9.27. This morning, Citi analysts responded to the quick service restaurant operator's FY 2024 results by retaining their sell rating and maintaining a price target of $10.60. The analysts pointed out that Collins Foods is grappling with challenging market conditions. Additionally, they expressed disappointment over management's outlook, which no longer expects margin improvements in the new financial year. Instead, the company's margins are anticipated to soften, adding to the negative sentiment.
Liontown Resources Ltd (ASX: ASX:LTR)
Liontown Resources' share price has tumbled 5% to 85.2 cents. This decline is attributed to a broader weakness in the lithium industry today. Investors are selling off lithium stocks as the price of this key battery-making ingredient continues to fall. Adding to the bearish sentiment, analysts at Barrenjoey downgraded Liontown Resources' shares to an underweight rating in a note released this morning. As a result, Liontown Resources' shares hit a multi-year low, reflecting the tough environment the company is facing.