In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 1.15% to 6,105.5 points.
Four shares that have climbed more than most today are listed below. Here’s why they are storming higher:
The Downer EDI Limited (ASX: DOW) share price is up 3% to $4.88. This gain appears to have been driven by a broker note out of Morgan Stanley this morning. Its analysts have upgraded Downer’s shares to an overweight rating with an improved price target of $5.60. It believes the company is well-positioned to benefit from the Federal Budget.
The ELMO Software Ltd (ASX: ELO) share price has jumped over 10% to $5.81 after announcing a major new acquisition. ELMO is acquiring UK-based Breathe for an initial payment of 18 million pounds (A$32.4 million) using a combination of cash and scrip. Breathe is a fast-growing, scalable human resources platform for small businesses. Its annualised recurring revenue (ARR) as of 31 August 2020 stood at 3.6 million pounds (A$6.5 million) and has been growing at over 30% annually.
The Netwealth Group Ltd (ASX: NWL) share price has surged 6.5% higher to $17.01 following the release of its first quarter update. During the three months ended 30 September, Netwealth recorded an 8% or $2.5 billion increase in funds under administration (FUA). This was driven by net inflows of $1.9 billion and favourable market movements of $0.6 billion.
The Sezzle Inc (ASX: SZL) share price has stormed 7% higher to $8.55. This follows the release of its third quarter update. For the three months ended 30 September, the buy now pay later provider reported a sizeable 231.5% year on year increase in underlying merchant sales (UMS) to US$228 million (A$318 million). This was driven by a 178.1% year on year increase in active customers to 1.79 million, a 178.3% lift in active merchants to 20,890, and strong repeat customer growth.
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Returns as of 6th October 2020
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 and recommends Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Elmo Software and Sezzle Inc. 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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