Why Afterpay, Austal, Reece, & Service Stream shares are racing higher

Afterpay Ltd (ASX:APT) and Austal Limited (ASX:ASB) are two of four ASX shares racing higher on Monday. Here’s why…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is well and truly back on form and charging higher. At the time of writing, the benchmark index is up 1.5% to 6,774.6 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price has rebounded 6% to $126.40. Investors have been buying the payments company’s shares amid improving sentiment in the tech sector. In addition to this, this morning analysts at Ord Minnett retained their buy rating and increased their price target on its shares to $150.00.

Austal Limited (ASX: ASB)

The Austal share price is up 6% to $2.52. The catalyst for this was news that Austal’s Philippines business has successfully delivered Hull 419 to Fjord Line of Norway. The 109 metre high-speed catamaran vehicle-passenger ferry is the largest ferry to be constructed by Austal, at any of the company’s shipyards worldwide. In addition to this, this morning Credit Suisse upgraded the shipbuilder’s shares to an outperform rating with a $2.75 price target.

Reece Ltd (ASX: REH)

The Reece share price has climbed 5% to $17.00. This gain appears to have been driven by another broker note out of Ord Minnett. This morning its analysts upgraded the plumbing parts company’s shares to a hold rating. It made the move in response to its half year results release last week.

Service Stream Limited (ASX: SSM)

The Service Stream share price is up over 3% to $1.19. This is despite there being no news out of the essential network services provider. However, with the Service Stream share price losing almost 40% of its value last week, some investors may believe its shares have been oversold. Last week Ord Minnett put a buy rating and $2.06 price target on its shares following its half year results.

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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 Austal Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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