Why Eagers Auto, Orocobre, Sims, & Titomic shares are storming higher

Orocobre Limited (ASX:ORE) and Sims Ltd (ASX:SGM) are two of four ASX shares that are storming higher on Monday. Here’s why…

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a gain. At the time of writing, the benchmark index is up 0.2% to 7,078.3 points.

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

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price has climbed 4% to $16.21. Investors have been buying the auto retailer’s shares after Morgan Stanley responded positively to its recent trading update. The broker notes that Eagers Automotive is trading well-ahead of expectations so far in FY 2021. In addition, the broker believes it is well-placed to be a much more profitable company in the future. Morgan Stanley has retained its overweight rating and lifted its price target to $18.00.

Orocobre Limited (ASX: ORE)

The Orocobre share price has jumped 5% to $6.50. Investors have been scrambling to buy its shares after it announced a merger with fellow lithium producer Galaxy Resources Limited (ASX: GXY). The company notes that the merger will create the fifth largest global lithium chemicals company with a diversified production base and exciting growth platform. The Galaxy share price is rising on the news as well.

Sims Ltd (ASX: SGM)

The Sims share price has surged 10% higher to $16.78. The scrap metal company’s shares were given a boost today from the release of a trading update. According to the release, Sims is expecting to achieve underlying earnings before interest and tax (EBIT) of around $260 million to $310 million in FY 2021. This compares to an underlying loss before interest and tax of $57.9 million in FY 2020 and underlying EBIT of $230.3 million in FY 2019.

Titomic Ltd (ASX: TTT)

The Titomic share price has risen almost 6% to 55.5 cents. This morning the digital manufacturing solutions provider announced an agreement to acquire the assets of US-based Tri-D Dynamics. It is a Silicon Valley-based design and manufacturing company developing smart pipe infrastructure for the 21st-century economy. Tri-D Dynamics aims to upgrade and electrify infrastructure by embedding electronics directly into metal structures to outfit them with digitally connected technology.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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