Why Aristocrat Leisure, Opthea, PointsBet, & Spirit are storming higher:

Aristocrat Leisure Limited (ASX:ALL) and PointsBet Holdings Ltd (ASX:PBH) shares are two of four storming higher on Wednesday…

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ASX bank profit upgrade Red rocket and arrow boosting up a share price chart

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In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.6% to 6,845.9 points.

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

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is up 4% to $34.97. This appears to have been driven by a broker note out of Credit Suisse this morning. In response to its virtual investor round table event, the broker has retained its outperform rating and lifted its price target by 10% to $38.00. Credit Suisse was pleased with the updates provided for both its land-based and digital businesses.

Opthea Ltd (ASX: OPT)

The Opthea share price has surged 12% higher to $1.60. This follows news that the biotech company has received an initial Pediatric Study Plan (iPSP) waiver from the US Food and Drug Administration (FDA) for OPT-302. The iPSP waver means Opthea will not have to conduct an additional study in the paediatric population.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price has stormed 4.5% higher to $12.81. This follows the release of a positive broker note out of Goldman Sachs this morning. According to the note, the broker has initiated coverage on the sports betting company with a buy rating and $17.50 price target. Goldman believes the company is well-placed to benefit from a US sports betting market which is expected grow by a compound annual growth rate of 40% through to 2033.

Spirit Technology Solutions Ltd (ASX: ST1)

The Spirit share price has jumped 8.5% to 38 cents. The catalyst for this gain was news that Spirit has acquired Nexgen for up to $50 million. This will be paid 70% in case and 30% in shares. According to the release, the acquisition of the data, security and voice products provider is expected to add over five thousand new B2B clients and generate $36 million in revenue. Approximately 80% of this is recurring. To fund the deal, Spirit has undertaken a $23.8 million institutional placement and increased its debt facility.

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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 and recommends Pointsbet Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of SPIRIT TC FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and SPIRIT TC FPO. 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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