In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another very disappointing decline. At the time of writing, the benchmark index is down 2.3% to 6,977.6 points.
Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is up over 7% to $5.46. This follows reports that the infant formula company could be a takeover target of Canadian dairy giant Saputo. This comes amid speculation that Saputo is on the verge of announcing a major acquisition in the Australian market. The report appears to overlook the fact that A2 Milk is a New Zealand company.
Baby Bunting Group Ltd (ASX: BBN)
The Baby Bunting share price is up over 5% to $5.06. This is despite there being no news out of the baby products retailer on Tuesday. Though it is worth noting that a number of brokers have buy ratings and price targets materially above today’s levels. This includes Morgans with an add rating and $6.20 price target.
Codan Limited (ASX: CDA)
The Codan share price has jumped 18% to $9.85. This follows the release of a trading update from the metal detector and electronic products company. Codan revealed that a strong finish to the half led to it recording sales of $257 million for the six months ended 31 December. This represents a 32% improvement over the prior corresponding period.
Sezzle Inc (ASX: SZL)
The Sezzle share price is up over 9% to $2.34. This follows news that Zip Co Ltd (ASX: Z1P) is interested in acquiring its buy now pay later rival. This morning both companies confirmed that they are in talks regarding a transaction. However, no details have been provided in respect to financial terms. In addition, both companies have warned that the talks are at an early stage and there is no guarantee that a deal will materialise.
The post Why A2 Milk, Baby Bunting, Codan, and Sezzle shares are surging higher appeared first on The Motley Fool Australia.
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More reading
- Why the A2 Milk (ASX:A2M) share price is jumping 8% despite the market selloff
- ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update
- Codan (ASX:CDA) share price rockets 16% on trading update
- Why is the Sezzle (ASX:SZL) share price rocketing 20% higher?
- Zip (ASX:Z1P) share price higher amid Sezzle acquisition talks
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. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended A2 Milk and Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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