The S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is charging notably higher. In afternoon trade, the benchmark index is up 0.8% to 7,435 points.
Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is up 5.5% to $7.36. This appears to have been driven by a broker note out of Citi this morning. According to the note, the broker has retained its buy rating and $7.20 price target on this infant formula company's shares. Citi was pleased with improvements in its inventory position and feels there are signs that the A2 Milk brand is more resilient in China than previously thought.
Adairs Ltd (ASX: ADH)
The Adairs share price is up 3% to $4.04. This follows the release of a trading update this morning. As was widely expected due to lockdowns, Adairs reported that its sales have fallen 8.5% year on year during the first 16 weeks of FY 2022. Positively, management expects its sales to rebound now lockdowns are ending. It anticipates that pent-up demand, combined with the current online delivery delays, will encourage customers to shop in stores to secure their purchases in the lead up to Christmas.
Bapcor Ltd (ASX: BAP)
The Bapcor share price is up 5% to $8.08. This appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has upgraded this auto parts retailer's shares to an add rating with an $8.45 price target. Morgans was pleased with its resilient performance during the first quarter.
Kogan.com Ltd (ASX: KGN)
The Kogan share price is up over 7% to $11.73. This follows the release of the ecommerce company's first quarter update. Kogan reported a 21.1% year on year and 23.2% quarter on quarter increase in gross sales to $330.5 million. And although its gross profit fell 1.7% year on year to $52.5 million, it increased 31.6% quarter on quarter. Also giving its shares a boost was news that its inventory position has reduced meaningfully.
