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Highlights
- AVITA Medical shares drop 12% after downgraded FY 2024 guidance.
- Lovisa Holdings faces 9% decline following multiple broker downgrades.
- Star Entertainment Group sees 23% plunge amid cash position concerns and debt struggles.
On Thursday, the S&P/ASX 200 Index fell into negative territory, dropping 0.4% to 8,314.6 points by the afternoon. While the broader market struggles, several individual stocks are facing even steeper declines. Below are four ASX-listed companies that have been hit hardest today and the factors contributing to their downward trajectories:
1. AVITA Medical Inc (ASX:AVH) - Down 12%
AVITA Medical, a company specializing in regenerative medicine, is experiencing a significant sell-off, with its share price falling 12% to AU$3.10. This drop comes after the company downgraded its guidance for FY 2024. The wound care and skin restoration device maker now expects commercial revenue for the year to be approximately US$64.3 million, down from its previous forecast of US$68 million to US$70 million. AVITA’s weaker-than-expected performance in the fourth quarter has raised concerns among investors. Despite the setback, CEO Jim Corbett remained optimistic, stating, “We remain confident in our long-term growth trajectory...Our strategic investments in our people and new products position us to continue to drive significant growth and sustainable success.”
2. Lovisa Holdings Ltd (ASX:LOV) - Down 9%
Lovisa, the fashion jewellery retailer, saw its share price decline by 9%, dropping to AU$27.10. This downturn follows recent broker downgrades, with UBS lowering its rating from "buy" to "sell" and setting a AU$27.00 price target for the stock. UBS cited the downside risk to consensus earnings estimates and reduced valuation support, stating that the risk-reward balance for Lovisa is no longer compelling. Additionally, Jefferies downgraded its recommendation for the company from "buy" to "hold," further contributing to the negative sentiment surrounding the stock.
3. Star Entertainment Group Ltd (ASX:SGR) - Down 23%
Star Entertainment’s shares have plummeted 23% to 15 cents as the casino and resort operator revealed troubling news about its cash position. The company disclosed that its available cash as of December 31, 2024, had fallen to AU$79 million, a significant reduction from AU$149 million at the end of September. Star is now in the process of securing a AU$100 million debt facility, but it faces considerable challenges in meeting the conditions required to draw down the funds. The company acknowledged that the current circumstances make these conditions difficult to meet, causing further concern among investors about Star’s financial stability.
