The S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) is on course to have a strong finish to the week. At the time of writing the small cap index is pushing almost 0.5% higher to 2,826.9 points.
Three small caps that have stood out with solid gains today are listed below. Here's why they are on the rise:
The iSelect Ltd (ASX: ISU) share price has pushed almost 4% higher to 55.5 cents despite there being no news out of the price comparison company. Today's move higher could be in response to a broker note out of Credit Suisse earlier this week. Although its analysts downgraded its shares to neutral from an outperform rating, its shares are now trading below the reduced price target of 58 cents. While I do think value could be emerging, I wouldn't be a buyer until I saw evidence that its issues are only short term and not structural.
The Lithium Australia NL (ASX: LIT) share price has jumped 6% to 14 cents after the lithium-focused mineral exploration company released preliminary drilling results from its Sadisdorf operation in Germany. According to the release, significant intercepts of lithium and tin were uncovered in the first diamond drill hole. Whilst I think the results are promising, I still feel buying large cap lithium miners such as Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS) is the better option for investors looking to gain exposure to the space.
The Resapp Health Ltd (ASX: RAP) share price has climbed 3.5% to 15 cents thanks to the release of a positive broker note out of Morgans. According to the note, the broker has upgraded the medical technology company's shares to an add rating from hold. Furthermore, its analysts have lifted the price target on ResApp's shares all the way from 12 cents to a generous 28 cents. Morgans appears optimistic that positive news flow from two upcoming clinical studies could drive its share price higher.
