Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has bounced back from yesterday’s selloff. At the time of writing, the benchmark index is up 0.7% to 7,014.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 4% to $5.63. This morning the team at Bell Potter responded to the infant formula company’s full year results very positively. Its analysts have upgraded A2 Milk’s shares to a buy rating with an improved price target of $6.35. It commented: “If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e.”

Deep Yellow Limited (ASX: DYL)

The Deep Yellow share price is up 12% to $1.03. Investors have been buying this uranium developer’s shares after the price of the chemical element surged higher overnight. With many governments looking at nuclear power options, traders are betting that demand for uranium will increase strongly.

Healius Ltd (ASX: HLS)

The Healius share price is up 3% to $3.81. This morning this healthcare company reported record results for FY 2022. Healius’ revenue was up 22.2% to $2,337.7 million and its net profit after tax doubled to $309.3 million. COVID testing demand was a key driver of its growth in FY 2022. This was supported by the roll-out of nearly half of its sustainable improvement program phase 2 initiatives.

IGO Ltd (ASX: IGO)

The IGO share price is up 3.5% to $13.12. This follows the release of the battery materials miner’s full year results for FY 2022. IGO reported a 34% increase in revenue to $903 million and a 51% jump in underlying EBITDA to $717 million. This reflects the first-year contribution from its lithium joint venture and a strong performance from its Nova nickel project.

The post Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• Are A2 Milk shares ‘turning a corner’ on the daigou debacle?
• Could this tiny development add even more fuel to ASX uranium shares?
• Healius share price climbs as profit doubles in FY22
• IGO share price moves higher on record earnings
• 5 things to watch on the ASX 200 on Tuesday

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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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