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Why A2 Milk, Adairs, Bapcor, and Kogan shares are racing higher

These ASX shares are on form on Wednesday…
The post Why A2 Milk, Adairs, Bapcor, and Kogan shares are racing higher appeared first on The Motley Fool Australia. –

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.

The post Why A2 Milk, Adairs, Bapcor, and Kogan shares are racing higher appeared first on The Motley Fool Australia.

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More reading

ASX 200 (ASX:XJO) midday update: Kogan jumps, Flight Centre sinks

Kogan (ASX:KGN) share price surges 8% higher amid strong Q1 sales growth

Adairs (ASX:ADH) share price pushes higher despite sales slump

Why Bapcor, Cochlear, Novonix, and Zip shares are rising

A2 Milk (ASX:A2M) share price ticks higher as UBS increases holding

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. owns shares of and has recommended ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO, Bapcor, and Kogan.com ltd. The Motley Fool Australia has recommended A2 Milk. 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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