Why CBA, IAG, Lovisa, and Medibank shares are pushing higher today

These shares are having a good session on hump day. But why?

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Key points

  • Despite a downturn in the S&P/ASX 200 Index, Commonwealth Bank shares are climbing almost 2% as investor confidence in upcoming bank results remains strong.
  • Lovisa Holdings has surged over 2%, buoyed by a positive broker upgrade from Citi due to robust store expansion efforts and reduced competition boosting its growth prospects.
  • Medibank Private shares are gaining traction with a 1.5% rise, following news of a strategic acquisition of Better Medical, expanding its healthcare service reach across various states.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.3% to 8,788.4 points.

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

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank of Australia share price is up almost 2% to $177.10. This is despite there being no news out of Australia's largest bank. However, investors appear upbeat on the banking sector right now following the release of one of the big four bank's full year results earlier this week. And with more results due to be released in the coming days, it seems that investors are confident they will be at least in line with expectations.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is up 1.5% to $7.87. This may have been driven by investors seeking relatively defensive shares following a poor night of trade on Wall Street. Following today's move, IAG shares have now delivered shareholders a 12-month return of 10.5% including dividends.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is up over 2% to $37.09. This appears to have been driven by the release of a bullish broker note out of Citi this morning. According to the note, the broker has upgraded this fashion jewellery retailer's shares to a buy rating (from neutral) with a $42.50 price target. This implies potential upside of almost 15% from current levels. Citi made the move after looking into Lovisa's store openings, which it estimates is running at over 2 new store openings per week. In light of this, it feels the company is well-placed to deliver on its store rollout target. And with a major competitor closing down, it sees scope for Lovisa to outperform its target.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price is up 1.5% to $4.92. Investors have been buying this private health insurance giant's shares after it announced a new acquisition. Medibank has signed an agreement to acquire Better Medical for a consideration of approximately $159 million, subject to certain closing adjustments. Better Medical is a network of 61 GP and medical clinics in Victoria, Queensland, South Australia, and Tasmania. It has operated in the community since 2015, with around 800 doctors, nurses and allied health practitioners delivering care to patients. This deal takes the total amount Medibank has invested in M&A between FY 2024 and FY 2026 to $218 million, which is towards the top end of the $150 million to $250 million target range.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. 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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