These small cap ASX shares are surging higher on Tuesday

In early afternoon trade the Australian share market has given back many of its morning gains but still sits higher by 0.1%.

Three shares that are climbing more than most at the small end of the market are listed below. Here’s why they are surging higher:

The Bellevue Gold Ltd (ASX: BGL) share price has pushed 2.5% higher to 44 cents. This morning a note out of the Macquarie equities desk revealed that its analysts have initiated coverage on the gold miner with an outperform rating and 70 cents price target. Macquarie believes the high-grade resource that has been defined at its Bellevue site could be developed into a standalone project. In addition to this, it believes the project would be an attractive acquisition target for a larger player.

The Pro-Pac Packaging Limited (ASX: PPG) share price has jumped 7.5% higher to 21.5 cents on the day of the packaging company’s annual general meeting. Yesterday the company’s shares fell heavily after it downgraded its EBITDA guidance for FY 2019 to the range of $30 million to $33 million due to the impact that drought conditions and higher raw material input costs have had on its Flexibles packaging business. This morning the company revealed that its chief executive officer, Grant Harrod, has tendered his resignation. The market may believe a change at the top is necessary to improve the company’s performance.

The QANTM Intellectual Property Ltd (ASX: QIP) share price has surged 7% higher to $1.40 after the intellectual property services company confirmed that it has received a $1.80 per share unsolicited, indicative, preliminary, conditional and non-binding acquisition proposal from IPH Ltd (ASX: IPH). However, the QANTM board believes the proposal is not in the best interests of shareholders. Instead, it continues to support the planned merger with Xenith IP Group Ltd (ASX: XIP).