On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX 200 shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $27.00. While the broker notes that its capital raising has significantly de-risked its operating model and means it should be able to fund the next couple of years of underlying sales estimates, it still feels its shares are wildly overvalued at the current level. The Afterpay share price is up over 10% to $73.05 this afternoon.

AGL Energy Limited (ASX: AGL)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut the price target on this energy company’s shares to $13.70. The broker believes that electricity demand has been resilient since its last update and expects the company to announce a share buyback with its full year results. However, it remains concerned by its prospects in FY 2021 due to weak wholesale prices. The AGL Energy share price is changing hands for $17.01 today.

Northern Star Resources Ltd (ASX: NST)

Another note out of UBS reveals that its analysts have retained their sell rating but lifted the price target on this gold miner’s shares to $14.25. Although Northern Star’s latest quarterly update was better than it expected, it remains concerned that the gold miner’s guidance for FY 2021 will fall short of expectations. It believes the market is expecting too much and that lower grades will weigh on its overall production. The Northern Star share price is up at $14.95 this afternoon.

More reading

• ASX 200 up 0.8%: Afterpay jumps on broker note, Treasury Wine update disappoints
• 3 ASX dividend shares to buy in July
• 2 ASX shares that could flourish in an Australian recession
• Why Afterpay, Evolution, Netwealth, & Praemium shares are racing higher
• 3 dependable, blue chip ASX shares for uncertain times

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Netwealth Group Ltd (ASX: NWL) share price is trading 7.76% higher in today’s trade, after the company released a positive trading update.  

What did Netwealth announce?

Earlier today, Netwealth released its quarterly business update which highlighted record growth in annual net inflows. Despite negative market movements wiping $900 million from its funds, Netwealth reported that total funds under administration (FUA) grew 35% for FY20 to $31.5 billion.

The growth in FUA was fuelled by record net inflows of $9.1 billion for FY20. For the quarter, FUA surged 13% to $3.6 billion, with $1.5 billion from net inflows and $2.1 billion attributed to positive market movements.

According to the update, Netwealth has recorded the highest net fund flows for 8 consecutive quarters. In addition, of the major platforms, Netwealth is the fastest growing in absolute terms. It is also the seventh largest platforms provider on the market with a 3.6% market share.

As a result of this strong growth, Netwealth expects to exceed its previous guidance for FY20. The company had previously expected revenue for FY20 to be in the range of $116 to $120 million and forecast underlying EBITDA to be in the range of $50 to $62 million. Unsurprisingly, today’s news has had a positive impact on the Netwealth share price.

What does Netwealth do?

Netwealth Group is a specialist investment platform used by financial intermediaries to provide investment management solutions. The company’s platform provides financial advice on superannuation and other investments. It also provides users with the ability to invest in a wide range of products.

Following the Royal Commission into banking and financial services, Netwealth has been taking market share from other institutional platforms. These include the big banks and other large finance companies. Despite the uncertainty and disruptions surrounding COVID-19, the group remains positive given its strong cash position, no debt and growing market share.

As at 30 June 2020, Netwealth boasted 81,804 member accounts. This came after adding 3,261 new accounts for the quarter. 

The Netwealth share price

The Netwealth share price has surged more than 100% from its lows in March. It is currently trading over 28% higher for 2020. At the time of writing, the Netwealth share price has surged more than 7% in today’s trade and is currently trading at a multi year high of $10 per share.

More reading

• ASX 200 up 0.8%: Afterpay jumps on broker note, Treasury Wine update disappoints
• Why Afterpay, Evolution, Netwealth, & Praemium shares are racing higher
• Top brokers name 3 ASX shares to sell next week
• The latest ASX stocks to be downgraded by top brokers today
• Why Adbri, BlueScope, Netwealth, & Rio Tinto shares are tumbling lower

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Netwealth. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Sezzle Inc (ASX: SZL) share price has been an exceptionally strong performer again on Thursday.

In early afternoon trade the buy now pay later provider’s shares are up 29% to $6.34.

At one stage they were up as much as 32% to a new record high of $6.48.

Why is the Sezzle share price on fire?

Investors have been fighting to get hold of Sezzle’s shares this week following the release of a very positive update.

On Tuesday Sezzle released its second quarter update and revealed that its strong underlying merchant sales (UMS) growth had continued.

During the quarter, the Afterpay Ltd (ASX: APT) rival reported UMS of US$188 million (A$272.3 million). This was a 58% quarter on quarter increase and a massive 349% year on year increase.

Management advised that key drivers of this growth were increases in active customers, active merchants, and customer usage.

At the end of the quarter there were 1.48 million active customers and 16,112 active merchants on its platform. This represents a 243% and 219% increase, respectively, over the prior corresponding period.

Pleasingly, these customers were using its platform more frequently than ever before. Repeat usage improved over 10 points year on year to 87.5% for June 2020. This compares to 77.2% in June 2019 and represents its 18th straight month of sequential improvement.

Management appears confident this positive form will continue and provided full year annualised UMS guidance of US$1 billion.

Broker buy rating.

One broker that liked what it saw was Ord Minnett.

In response to this update, the broker reiterated its buy rating and lifted its price target by almost 50% to $5.95.

Ord Minnett made the move after increasing its revenue forecasts to reflect its stronger than expected growth.

However, it is worth noting that the Sezzle share price has now broken through this level. So, this could be a sign that the near term share price gains are coming to an end. Though, given the positive investor sentiment in the buy now pay later industry, anything is possible.

More reading

• 2 ASX shares that could flourish in an Australian recession
• Top brokers name 3 ASX shares to buy right now
• ASX buy now, pay later shares leading the recovery
• ASX 200 drops on return of lockdown in Melbourne
• Why Australian Ethical, Magellan, St Barbara, & Sezzle shares are zooming higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Reporting season is always awaited with anticipation of good news, but the losses witnessed on the ASX this year have already primed the market to expect the worst earnings numbers since 2011–2012. Given that consensus forecasts project a 15%–20% decline in company earnings for FY20, the sea of red during this reporting season shouldn’t come as a rude shock.

While it will be good to get the full brunt of the COVID-19 hit to corporate earnings out on the table, the trickier part for investors will be making sense of earnings forecasts for FY21 – which Morgan Stanley expects to improve to a drop of 2.7%.

Adding to the forecasting conundrum is the unknown impact from any extension to JobKeeper and/or the fallout from the federal government’s budget night announcements in October.

Due to the continuous disclosure rules for listed companies, shareholders should be in a ‘no-surprise’ situation when companies finally report. However, some companies may feel it’s prudent to feed the market with any updates – especially on any major earnings adjustments – before their results are released.

Here are 3 ASX shares that may be among those likely to deliver a surprise in terms of either earnings, outlook guidance or capital management at or before reporting season.

FlexiGroup Limited (ASX: FXL)

With the FlexiGroup share price down around 35% since the start of the year, despite improving fundamentals, it’s clear in my opinion that this point-of-sale finance provider has been left oversold in the wake of COVID-19. I expect the commentary at full year to provide greater insight into FlexiGroup’s digital offering – mainly under the Humm brand – and how that has helped to add new customers to its platform.

Much of the company’s recent trans-Tasman customer growth – now 2.1 million – can be attributed to its diverse business model, which includes buy now, pay later (BNPL), credit cards and SME lending. Equally encouraging is the ‘stickiness’ of its customer base, with those using one of its payment products doing so on average 9 times a year.

While the FlexiGroup share price soared 12% following its recent market update, which included revelations its customer base exceed 2 million, it has not enjoyed the same manic party experienced by its all-star peers Afterpay, Zip, and Splitit.

I’m expecting the full result to include supporting commentary around the company’s recent turnaround. This should help to woo those investors who still view the stock under its former guise as a struggling consumer lender.

In my opinion, those who buy at current levels, and before the full year announcement, should not be disappointed 12 months from now.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Despite being one of the hardest hit by the shutdown in domestic and international travel due to COVID-19, I think investors in the airport will be rewarded for staying the course over the longer haul. I believe the stock is well capitalised to weather a more protracted recovery.

I expect the market to reward any sliver of blue sky announced during reporting season by pushing the Sydney Airport share price – currently down around 40% on its February high of $9.04 – higher. The airport will also benefit from a recalibration of the COVID-19 crisis, which is now less about eradication, and more about containment.

Total passenger numbers were down 97.4% in May and will remain similarly low until government travel restrictions are eased.

While domestic and international passenger numbers aren’t expected to return to pre-COVID levels until 2023 and 2024, respectively, it’s important recognise the near-monopoly status of this infrastructure asset, and how that underscores its core earnings. I suspect, that within short-order, analysts will recognise the futility of benchmarking Sydney Airport by its pre-COVID highs.

I’m of the belief that if you enter this stock for a long-term play, at current levels, you won’t look back in anger. Watch out for any announcements during reporting season of new lease agreements with luxury brands, plus further updates on its hard infrastructure investments, and updates on its covenant position.

Centuria Industrial Reit (ASX: CIP)

Australia’s largest domestic pure-play industrial REIT, Centuria Industrial has arguably crawled out from under the COVID-19 mockers with one of the finest set of numbers. Centuria has pre-empted reporting season with an announced uptick in the value of its portfolio by an estimated 1.3%, or $21 million.

Much of the strong showing in its industrial property comes from the defensive nature of its industrial occupiers, with ongoing demand from e-retailing, online grocery shopping and packaging requirements providing an added kicker.

But these are preliminary revaluations, and I’m assuming there’s more good news in store the will accompany its full year announcement. I’m going to watch the full year announcement for further insights into how industrial property appears set to ride the post-COVID online sales boom.

Based on this upside and the numbers that Centuria has already reported to the market, I can’t see any real justification for the 15% discount the stock is trading at relative to its mid-February high of $3.79.

More reading

• 2 high quality ASX dividend shares to buy today
• Does Afterpay have a competitive advantage?
• The FlexiGroup share price is lagging its BNPL peers. Should you buy?
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 2 ASX dividend shares with yields over 6%

Motley Fool contributor Mark Story owns shares of Sydney Airport Holdings Pty Ltd. The Motley Fool Australia has recommended FlexiGroup Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. The benchmark index is currently up 0.8% to 5,967 points.

Here’s what is happening on the market today:

Afterpay share price jumps on broker note.

Investors have been buying Afterpay Ltd (ASX: APT) shares on Thursday following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker upgraded Afterpay’s shares to a buy rating and lifted its price target on them materially from $36.00 to a lofty $101.00. Morgan Stanley was pleased with the buy now pay later provider’s better than expected credit quality control performance and sales growth acceleration. It also sees opportunities for M&A activity following Afterpay’s recent capital raising.

Netwealth impresses.

It has been a very positive day for the Netwealth Group Ltd (ASX: NWL) share price. The investment platform provider’s shares have surged higher following its fourth quarter update. At the end of the fourth quarter, Netwealth’s funds under administration (FUA) stood at $31.5 billion. This means the company grew its FUA by $8.2 billion or 35% during the financial year. This is despite it facing negative market movements of $0.9 billion for the year.

Treasury Wine earnings to slide.

The Treasury Wine Estates Ltd (ASX: TWE) share price is tumbling lower after it provided the market with an update on its performance in FY 2020. The wine giant advised that it expects its earnings before interest, tax and the agricultural accounting standard SGARA (EBITS) to be between $530 million and $540 million in FY 2020. This represents an 18.5% to 20% decline on FY 2019’s EBITS of $662.7 million. Management advised that this reflects the impact of the COVID-19 pandemic, which has had a significant impact on its trading performance across all geographies throughout the second half.

Best and worst ASX 200 shares.

The Netwealth share price is the best performer on the ASX 200 on Thursday with a 7% gain. This follows the release of its fourth quarter update. The GWA Group Ltd (ASX: GWA) share price has been the worst performer with a 3% decline. This morning Macquarie retained its neutral rating but slashed the price target on this household products company’s shares to $2.90. It made the move after adjusting its estimates to reflect current housing activity.

More reading

• Top brokers name 3 ASX 200 shares to sell today
• Netwealth share price surges on record inflows
• 2 ASX shares that could flourish in an Australian recession
• Why Afterpay, Evolution, Netwealth, & Praemium shares are racing higher
• Why GWA, Meridian Energy, Treasury Wine, & WiseTech Global are dropping lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Netwealth. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The PSC Insurance Group Ltd (ASX: PSI) share price bounced 2.08% yesterday after the commercial insurance brokerage released a trading update, and has continued its gains in morning trade today, rising another 2.86% to $2.52 at the time of writing.

PSC Insurance revealed its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) performance to the end of May was up over 30% compared to the prior corresponding period. 

PSC Insurance’s post-pandemic performance 

The PSC share price has recovered a mere 20% from its March low of $2.10, trailing the broader market. The S&P/ASX 200 Index (ASX: XJO) by comparison, is up 32%. Despite this, PSC’s performance throughout the coronavirus pandemic has been in line with pre-pandemic expectations. The company has remained committed to its full year FY20 guidance of EBITDA of >$57 million.

Coronavirus prompted a review of costs by the broking business, which has undertaken several recent acquisitions. Where appropriate, PSC reports that costs have been tightened to reflect the uncertain economic environment. The benefit of these measures will largely flow into the FY21 year results. 

Cash collections have remained strong throughout the pandemic. The insurer revealed that EBITDA during the month of May was approximately 100% over the prior comparative period. June revenue was in line with expectations with great results for the core broking and agency businesses, meaning full year guidance remains unchanged. 

The latest update sees a continuation of PSC’s strong first half performance, which saw revenue increase 39%. Underlying profit rose 19% and the fully franked interim dividend increased by 13% to 3.5 cents per share. PSC has a track record of growth with revenue, profits and dividends increasing steadily since FY16. 

What is the outlook for PSC? 

The company has positive expectations for revenue and EBITDA growth for FY21. Results for FY21 will also have the benefit of the first full year of contributions from acquisitions in FY20. PSC expects to see strong organic growth in FY21, following the bedding down of acquisitions. 

PSC focuses on servicing the detailed insurance needs of small and medium enterprises, and the insurance broking sector has not seen too many direct impacts from COVID-19. Although some clients will no doubt have suffered due to the pandemic, PSC benefits from a diversified business.

Its interests span commercial insurance broking in Australia and New Zealand, and life insurance broking and workers compensation consulting in Australia. PSC also provides underwriting services across the construction, healthcare, hospitality, and accommodation industries. In the UK, the company also operates wholesale insurance broking and underwriting. 

Foolish takeaway

The diversity of PSC’s insurance businesses should provide it with some insulation against a downturn that weighs on some sectors of the economy more than others. Full year results are due to be released shortly which will provide further insight into performance. 

More reading

• Top brokers name 3 ASX 200 shares to sell today
• Netwealth share price surges on record inflows
• Why the Sezzle share price rocketed 32% higher today
• Why Sydney Airport and 2 other ASX shares could surprise this reporting season
• ASX 200 up 0.8%: Afterpay jumps on broker note, Treasury Wine update disappoints

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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ASX dividend shares are my favourite shares to own. Don’t get me wrong, I love a good growth share as much as anyone. But that feeling of getting paid just for owning something is pretty hard to beat. And that’s what a quality dividend share does like clockwork. So with this in mind, here are 3 ASX dividend shares I think would make great buys in July.

3 ASX dividend shares to buy this month

1) WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) run by the reputable Wilson Asset Management. This LIC is a newer addition to the WAM stable, only starting life in May 2016. But since then, it has delivered an average annual return of 9.8% (before fees and taxes). It focuses solely on the top end of the ASX, investing mostly within the ASX 50. Some of its top holdings include Australia and New Zealand Banking Group Limited (ASX: ANZ), Telstra Corporation Ltd (ASX: TLS) and BHP Group Ltd (ASX: BHP).

WAM Leaders recently announced a 3.25 cents per share final dividend, which takes its annualised yield to around 5.73% (or 8.19% grossed-up with full franking).

2) Coles Group Ltd (ASX: COL)

Coles is my second dividend pick for July. This supermarket giant is a highly defensive, recession-resistant business by virtue of the foods, drinks and household essentials it sells. I think these characteristics are especially useful as a dividend investment in the uncertain times we currently all live in.

Looking further ahead, I think Coles’ plans to automate its supply lines and distribution networks is a definite positive for the company and should help it deliver plenty of earnings growth down the road. Right now, Coles is offering a trailing dividend yield of 2.38%, which grosses-up to 3.4% with full franking. This yield isn’t going to set the world on fire, but it could well be a lot better than what Westpac Banking Corp (ASX: WBC) and ANZ are offering this year.

3) SPDR S&P Global Dividend Fund (ASX: WDIV)

This exchange-traded fund (ETF) isn’t one company, but instead holds a basket of dividend-paying shares that hail from all over the world. Having some dividends coming in from outside the ASX is important from a diversification perspective, in my view. And WDIV is a great candidate for providing this international exposure. It only holds companies that have either held steady or increased their dividend payouts over the past 10 years.

It’s fairly evenly spread between American, Canadian, Japanese, Hong Kong, British and European companies with even some ASX shares like AGL Energy Limited (ASX: AGL) thrown in. Some other top holdings include Enagas, IG Group, Northland Power and Japan Tobacco.

Today, WDIV is offering a trailing dividend yield of 5.49% (which unfortunately doesn’t come with much in the way of franking credits).

More reading

• Top brokers name 3 ASX 200 shares to sell today
• 3 dependable, blue chip ASX shares for uncertain times
• 3 ASX shares for growth, income, and value investors to buy today
• Is the Westpac share price a buy?
• 2 high quality ASX dividend shares to buy today

Motley Fool contributor Sebastian Bowen owns shares of SPDR S&P Global Dividend Fund and Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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On Tuesday evening, the Treasurer Josh Frydenberg discussed the impact of COVID-19 on the economy with the economics editor from The Australian. In this conversation, Frydenberg stated that we are definitely in a recession. Not only that, but this time, an Australian recession will be worse than it was in 1991. I had just entered the workforce prior to the 1991 recession, and an experience like that is not something that you easily forget.

If this is where we are headed once the smoke clears from the coronavirus pandemic, then I think it would be wise to structure your portfolio accordingly. This is something I have been contemplating for a few weeks now. Some businesses will flourish and grow, others will stagnate, and yet others will come under very extreme cost pressures. 

In particular, companies and people will be looking to increase the amount of capital on hand. 

Cashflow in an Australian recession

Companies with lumpy, milestone-based revenue streams can find themselves living off cash in hand for an extended period of time. For instance, companies like engineering firms, consultants, project managers and construction/maintenance contractors. 

In the event of an Australian recession, this effect worsens. For instance, the overall amount of work may go down, or the time between invoice and payment may extend, leaving the service provider more reliant on fewer milestone payments.

With the importance of cashflow in mind, here are 2 ASX shares that could find themselves in great demand if we move further into a recession.

CML Group Ltd (ASX: CGR)

CML Group is a small cap designed for hard times. The company specialises in short term credit for small and medium enterprises. CML’s main generator of revenue is what’s known as invoice factoring, which is a mechanism companies can use to smooth out payments. An invoice factoring company pays the invoice for you, minus a fee, and then takes payment when the client company pays. In some cases the factoring company will collect the payment directly from the client. This is a simplistic explanation, but you get the general idea.

CML recently reported strong monthly growth in volumes as business restrictions eased. In 2020, even with the COVID-19 total lockdown, the company financed over $1.7 billion in invoices compared with $1.6 billion for FY19.

Moreover, it has a 9 year average return on equity (ROE) of ~15%. This means for every dollar of net assets the company has, they earn 15c. I think this is a good level and shows the company has high margins.

CML Group also provides 2 other credit mechanisms businesses may need in an Australian recession. First, asset finance, either secured against current machinery or to purchase new machinery. Second, trade finance. This allows businesses to import products from overseas without having to spend their own working capital.

Sezzle Inc (ASX: SZL)

In hard times, people are generally less likely to make long-term credit commitments. In fact, they tend to cut back spending in a whole range of areas. Buy now, pay later (BNPL) companies are the latest iteration of short-term credit providers. The business model charges merchants instead of consumers. Consequently, it is a more attractive method for products and, increasingly, for services. 

Operating within Australia, the 2 major market players are Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P). However, I have always preferred Sezzle Inc, a company I own shares in.

Sezzle is headquartered in the United States, operating directly in the US$5.4 trillion dollar retail market. The company announced earlier this week that it now has a network of 1.48 million users and 16.1 thousand merchants.

This is useful for 2 reasons. First, I believe the company remains undervalued and has a long growth trajectory ahead of it. Second, the US population is ~13 times larger than Australia. Therefore, no matter how bad the economy is in the US, there will always be a greater number of people who can spend money as opposed to an Australian recession. 

The risk here is that of unsecured debt. When times get tough unsecured debts are often the first to be jettisoned. However, in the case of Sezzle there are light credit checks in place, and the timeframe for repayments is very small. Consequently, I think this lessens the chance of a high defaults levels.

Foolish takeaway

When the hard times come people act differently. Individuals become less secure in their employment, while companies try to ensure they maximise capital on hand. The 2 companies above help to manage cashflow, while keeping debt commitments to a short term horizon.

I think companies like these will flourish in an Australian recession, and I am carefully considering adding CML Group to my own portfolio.

More reading

• Why Afterpay, Evolution, Netwealth, & Praemium shares are racing higher
• 3 dependable, blue chip ASX shares for uncertain times
• Leading broker says Afterpay share price can hit $101
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops 1.5% today, Afterpay falls 3%

Daryl Mather owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The S&P/ASX 200 Index (ASX: XJO) has returned to form on Thursday and is charging notably higher in late morning trade. At the time of writing the benchmark index is up 0.7% to 5,962.7 points.

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

The Afterpay Ltd (ASX: APT) share price is up 5.5% to $69.65. Investors have been buying the payments company’s shares following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker has upgraded Afterpay’s shares to a buy rating and lifted its price target on them from $36.00 to $101.00. It is pleased with its better than expected credit quality control performance and sales growth acceleration. It also sees opportunities for M&A activity following its capital raising.

The Evolution Mining Ltd (ASX: EVN) share price has risen 4% to $6.29. The catalyst for this has been another rise in the gold price overnight. The price of the precious metal hit a nine-year high following increasing demand for safe haven assets. It isn’t just Evolution on the rise today, the S&P/ASX All Ordinaries Gold index is up a sizeable 2.5% at the time of writing.

The Netwealth Group Ltd (ASX: NWL) share price has jumped 6% to $9.82. This follows the release of the investment platform provider’s latest quarterly update. According to the release, Netwealth’s funds under administration (FUA) stood at $31.5 billion at the end of the fourth quarter. This means the company grew its FUA by $8.2 billion or 35% during the financial year. This includes a negative market movement of $0.9 billion for the year.

The Praemium Ltd (ASX: PPS) share price has rocketed 15% higher to 42.5 cents. Investors have been buying this investment platform provider’s shares after it announced the friendly takeover of Powerwrap Ltd (ASX: PWL). Praemium has offered 7.5 cents cash per Powerwrap share and 1 Praemium share for every 2 Powerwrap shares held. This values Powerwrap at $55.6 million or 26.44 cents per share, which represents a 51.1% premium to its last close price. The Powerwrap board has urged shareholders to accept the offer, in the absence of a superior proposal.

More reading

• 2 ASX shares that could flourish in an Australian recession
• 3 dependable, blue chip ASX shares for uncertain times
• Praemium share price rockets after agreeing $55.6 million Powerwrap takeover
• Gold jumps to 9-year high with record highs in sight
• Leading broker says Afterpay share price can hit $101

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Praemium Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Netwealth. The Motley Fool Australia has recommended Praemium Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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