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Why AVITA, De Grey, Fortescue, & TPG Telecom shares are racing higher

The S&P/ASX 200 index has followed the lead of U.S. markets and is charging higher on Thursday. At the time of writing the benchmark index is up 1.5% to 6,423.1 points.

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

The AVITA Medical Ltd (ASX: AVH) share price has surged 5% higher to 65 cents. Investors have been buying the regenerative medicine company’s shares after it announced another pivotal study for its RECELL System. AVITA has initiated a trial for the treatment of paediatric scald injuries with the enrolment of the first patient at the Arizona Burn Center in Phoenix, United States. This study is seeking to demonstrate that treatment with the RECELL System of partial-thickness burn injuries within 72-hours can safely and effectively increase the incidence of healing at day 10 when compared to a standard wound dressing.

The De Grey Mining Limited (ASX: DEG) share price has rocketed 43% higher to 26.5 cents. The catalyst for this was the release of gold assay results from drilling programs at the newly discovered Hemi Prospect. According to the release, its drilling has revealed exceptionally wide, continuous, and good grade gold mineralisation. The company believes this confirms a large scale gold system at Hemi.

The Fortescue Metals Group Limited (ASX: FMG) share price is up almost 6% to $10.11. This may be a delayed reaction to a positive broker note released on Wednesday. According to the note, UBS has upgraded the iron ore producer’s shares from a sell rating to a buy rating with an improved price target of $10.20. The broker suspects that China could soon introduce stimulus that ultimately supports iron ore demand.

The TPG Telecom Ltd (ASX: TPM) share price has jumped 9% higher to $8.20. This follows the release of its solid half year result this morning. During the half, the telco company delivered a 1% increase in revenue to $1,246.5 million and a 6% decline in underlying EBITDA to $399.1 million. This stronger than expected first half led to management upgrading its FY 2020 BAU EBITDA guidance to the range of $775 million to $785 million. This compares to its previous guidance of $735 million to $750 million. News that the ACCC will not appeal the Federal Court’s merger decision also boosted its share price.

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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 Avita Medical Limited. 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.