The S&P/ASX 200 index has followed the lead of U.S. markets and has tumbled sharply lower. At the time of writing the benchmark index is down a disappointing 1.6% to 6,294.6 points.
Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:
The Elders Ltd (ASX: ELD) share price has continued its positive run and is up a further 1.5% to $8.73. Investors may be buying the agribusiness company’s shares due to improving weather which has eased the tough trading conditions caused by the droughts and bushfires. In addition to this, on Wednesday the company revealed that investment company Perpetual Limited (ASX: PPT) has been increasing its stake. Perpetual recently bought almost 2 million shares, boosting its stake from 9.49% to 10.69%.
The Freedom Foods Group Ltd (ASX: FNP) share price is up almost 5% to $4.95. The catalyst for this rise appears to be a broker note out of Goldman Sachs earlier this week. According to the note, it retained its conviction buy rating and placed a $6.25 price target on this diversified food company’s shares. Goldman believes Freedom Foods is largely on track to deliver 50% EBITDA CAGR from FY 2019 through to FY 2022. This is based on the growth of both nutritional dairy and plant-based beverages, supported by a positive long-term macro outlook.
The Saracen Mineral Holdings Limited (ASX: SAR) share price is up 4% to $4.21. Investors have been buying Saracen and the rest of the gold miners following heavy declines on global share markets overnight. This has led to increasing demand for safe haven assets like gold and the gold miners, leading to the S&P/ASX All Ordinaries Gold index racing 2.5% higher today.
The Sonic Healthcare Limited (ASX: SHL) share price is up 4% to $31.02. This gain appears to have been driven by a positive broker note out of Citi this morning. According to the note, the broker has upgraded Sonic Healthcare’s shares to a buy rating with a $33.75 price target. The broker likes the healthcare company due to its stability and organic growth prospects. It also sees opportunities for its growth to be boosted by acquisitions.
5 stocks under $5
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*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited, Freedom Foods Group Limited, and Sonic Healthcare 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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