The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday’s decline with a push higher on Tuesday. In afternoon trade the benchmark index is up 0.5% to 6,208.6 points.
Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:
The A2 Milk Company Ltd (ASX: A2M) share price has climbed 4% to $10.80 after announcing a variation to its manufacturing and supply arrangements with Synlait Milk Ltd (ASX: SM1). According to the release, the two parties have signed a new minimum term of five years to 31 July 2023, with an increase in volume of infant formula products over which Synlait has exclusive supply rights. Synlait will increase its committed production capacity and pricing terms will reflect the commitment from both companies to an ongoing market-competitive pricing regime.
The FlexiGroup Limited (ASX: FXL) share price has pushed 4% higher to $2.27 after being the subject of a positive broker note out of Credit Suisse. According to the note, the broker has upgraded the financial services company’s shares to an outperform rating with a $2.45 price target on the belief that it has a chance of meeting its earnings forecasts in FY 2018.
The InvoCare Limited (ASX: IVC) share price is up 2% to $14.00 after the funerals company announced yet another acquisition. It has signed an agreement to buy Lester & Son in Albury-Wodonga. This is the leading funeral business on the New South Wales and Victoria border and is part of the company’s strategy of expanding its presence in regional markets.
The Treasury Wine Estates Ltd (ASX: TWE) share price is up 2% to $17.48. This week the wine company’s shares were given an overweight rating and $20.00 price target by analysts at Morgan Stanley. The broker believes that the recent China-related selloff has brought the wine company’s share price down to an attractive level.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended FlexiGroup Limited, InvoCare Limited, and Treasury Wine Estates 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.