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Why A2 Milk, Afterpay, Mesoblast, and Temple & Webster are pushing higher

The S&P/ASX 200 Index (ASX: XJO) looks set to follow the lead of U.S. markets and drop lower today. In late morning trade the benchmark index is down 1.2% to 5,918.9 points.

Four shares that have not let that hold them back today are listed below. Here’s why they are pushing higher:

The A2 Milk Company Ltd (ASX: A2M) share price has continued its positive run and climbed almost 4% to $19.83. Investors have been buying the infant formula and fresh milk company’s shares this week following a positive broker note out of UBS. According to the note, the broker has retained its buy rating and NZ$22.00 (A$20.64) price target on the infant formula company’s shares. It believes there is some upside risk to its earnings guidance for FY 2020.

The Afterpay Ltd (ASX: APT) share price is up 2% to $59.05. This morning analysts at Ord Minnett retained their buy rating and almost doubled the price target on the payments company’s shares to $64.70. It believes the buy now pay later provider will have almost 10 million active customers using its platform by the end of the financial year.

The Mesoblast limited (ASX: MSB) share price is up 2% to $4.05 despite there being no news out of the biotech company. However, next week Mesoblast will be added to the ASX 200 index. This could have led to increased demand for its shares from index tracking ETFs and fund managers with certain investment mandates.

The Temple & Webster Group Ltd (ASX: TPW) share price has jumped 9.5% to $5.49. This morning the online homewares retailer released a business update which revealed that it continued to experience strong demand in May. As a result, second half sales were up 90% on the prior corresponding period at the end of last month. Financial year to date, its operating earnings are up 668% to $7.1 million.

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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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of A2 Milk and AFTERPAY T FPO. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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