Why AMA, DroneShield, Pepper Money, and Westpac shares are pushing higher today

These shares are starting the week positively. But why?

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Key points

  • AMA Group's shares climb 9% after receiving a buy rating and a positive outlook on share consolidation from analysts at Bell Potter.
  • DroneShield's shares rise 1.5% following a $25.3 million contract win, strengthening its position in the Latin American defence market.
  • Pepper Money sees a 7% increase in share price after announcing the acquisition of the RAMS portfolio from Westpac, aligning with its growth strategy.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. At the time of writing, the benchmark index is down slightly to 8,876.8 points.

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

AMA Group Ltd (ASX: AMA)

The AMA Group share price is up 9% to 10 cents. This may have been driven by a broker note out of Bell Potter this morning. According to the note, its analysts have put a buy rating and 13 cents price target on the smash repair company's shares. It said: "We do not expect any further outlook commentary at the AGM on Monday but do see the share consolidation as a positive. We now look to the Q2 update in late January for an update on volumes."

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 1.5% to $3.89. Investors have been buying this counter drone technology company's shares following the announcement of another contract win. DroneShield revealed that it has received a $25.3 million contract from a privately owned in-country reseller that is contractually required to distribute the products to a Government defence end customer in a Latin American (LATAM) country. DroneShield's CEO, Oleg Vornik, said: "With this new contract, DroneShield continues to position itself as one of the preferred C-UAS systems in Latin America. As demand continues to evolve, DroneShield is ready to meet the requirements from a region where drones play a key role in the modern warfare."

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is up 7% to $2.39. The catalyst for this is news that the company has signed an agreement to acquire the RAMS portfolio from Westpac Banking Corp (ASX: WBC) alongside the KKR Consortium. The portfolio comprises approximately $21.4 billion in residential mortgages. Management notes that the "transaction aligns with Pepper Money's strategy to grow its capital-light servicing business, which provides annuity-style earnings, operational scale and diversification benefits."

Westpac Banking Corp

The Westpac share price is up 2.5% to $39.73. This follows the release of the banking giant's full year results this morning. For the 12 months ended 30 September, Westpac reported a 3% increase in net interest income to $19.473 billion but a 1% decline in net profit after tax to $6.989 billion. The latter was a touch ahead of the consensus estimate. Westpac's CEO, Anthony Miller, said: "This has been a solid year at Westpac and I'm pleased with the result we are delivering today. With a very strong balance sheet and momentum in our target segments, the opportunity to deliver more for our customers, people and shareholders is exciting. We're focused on relentless execution of our strategy and delivering every day for our customers."

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 positions in and has recommended DroneShield. 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 Scott Phillips.

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