Why Aeris Resources, Karoon Energy, Pilbara Minerals, and Temple & Webster shares are charging higher

These shares are ending the week with a bang. But why?

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Key points

  • Despite the overall decline in the S&P/ASX 200 Index, several ASX shares are experiencing gains due to positive broker notes and strong performance updates.
  • Aeris Resources shares are up by 9.5% after a broker note from Morgans, which highlighted growth potential and improved ratings due to positive operating results.
  • Pilbara Minerals shares are up by 7% following a robust first-quarter update, showing improved production and significant revenue growth, while Temple & Webster shares rose 5% on a buy rating from Bell Potter with a promising price target.

The S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. In afternoon trade, the benchmark index is down 0.1% to 9,024.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is up 9.5% to 57.5 cents. This could have been driven by a broker note out of Morgans. Its analysts have put an accumulate rating and 62 cents price target on the copper miner's shares. They said: "Steady operating result with in-line operating performance at Tritton slightly offset by some misses at Cracow. Importantly, growth at Tritton through the Murrawombie pit is on track and exploration continued to highlight potential for reserve/resource growth at both Tritton and Cracow. Move to an ACCUMULATE rating with a A$0.62ps TP (previously A$0.43)."

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is up 3% to $1.62. This may also have been driven by a broker note out of Morgans. In response to the energy producer's quarterly update, the broker has upgraded its shares to a buy rating with a $1.80 price target. It said: "Management has done a good job operating Bauna, but some risks cannot be mitigated in an ageing field. Balance sheet strength improving fast with net debt down US$89m QoQ. Medium-term focus shifting to Bauna well recovery and Who Dat East FID. Fundamental positives and share price skew positively, upgrade to BUY (from HOLD) with an A$1.80 target price (was A$1.90)."

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 7% to $3.17. Investors have been buying this lithium miner's shares after it delivered a stronger than expected first quarter update. Pilbara Minerals reported a 2% increase in production and a 20% lift in its average realised price. This led to a 30% increase in revenue to $251 million. Another positive was that its unit costs reduced 13% during the three months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is up 5% to $25.07. The catalyst for this appears to have been a broker note out of Bell Potter. It has upgraded the online furniture and homewares retailer's shares to a buy rating with a $28.00 price target. It said: "We continue to see catalysts of outperformance as market share capture in an expanded TAM is expedited with range, pricing/scale advantages, backed by a strong balance sheet ($144m cash). Following the sell-off in the sector/name, our PT of $28.00 implies a total expected return of >15% and we upgrade our recommendation to BUY."

Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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