Why API, Chalice Mining, GUD, and Worley shares are charging higher

Here’s why these ASX shares are on form today…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.4% to 7,206.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

Australian Pharmaceutical Industries Ltd (ASX: API)

The API share price has jumped 17% to $1.75. This follows news that Woolworths Group Ltd (ASX: WOW) has outbid rival Wesfarmers Ltd (ASX: WES) for the pharmacy chain operator. Woolworths has made a $1.75 cash per share offer, which represents a 20 cents per share or 12.9% increase over Wesfarmers’ offer. Judging by the share price reaction, it appears as though investors believe Wesfarmers will come back with an improved offer.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 2% to $9.57. This morning the mineral exploration company revealed that a new shallow high-grade PGE-Ni-Cu-Co sulphide discovery has been made at Chalice-owned farmland within the 100%-owned Julimar Project. This is a significant discovery as the new zone is located immediately south of the ~6.5km long Hartog AEM anomaly.

GUD Holdings Limited (ASX: GUD)

The GUD share price is up over 2.5% to $11.07. Investors have been buying the diversified products company’s shares following the release of a broker note out of Citi. According to the note, the broker has retained its buy rating and lifted its price target on the company’s shares to $15.70. This follows the announcement of its acquisition of Auto Pacific Group for approximately $744.6 million.

Worley Ltd (ASX: WOR)

The Worley share price is up 3.5% to $9.83. This appears to have been driven by a bullish broker note out of Morgan Stanley this morning. According to the note, its analysts have upgraded the engineering company’s shares to an overweight rating with an improved price target of $12.00. The broker expects Worley to benefit from the clean energy transition.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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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