Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today
The S&P/ASX 200 Index (ASX: XJO) is having a strong finish to the week. In afternoon trade, the benchmark index is up 0.85% to 8,394.6 points.
Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:
A2 Milk Company Ltd (ASX: A2M)
The A2 Milk Company share price is up over 17% to $5.65. Investors have been buying this infant formula company's shares this morning after it upgraded its revenue guidance and announced a dividend policy. The former sees A2 Milk guide to mid to high single-digit revenue growth in FY 2025 compared to its previous guidance of mid single-digit growth. As for the latter, the company has announced a dividend policy that targets a payout ratio range of between 60% and 80% of net profit after tax excluding non-recurring and other items (normalised NPAT). This policy comes into place immediately and its inaugural dividend is expected to be declared in February with a 60% payout ratio.
Electro Optic Systems Holdings Ltd (ASX: EOS)
The EOS share price is up 10% to $1.17. This morning, this defence and space systems company announced a major divestment. It has entered into a binding share sale agreement to sell its Naval Satellite Communications subsidiary, EM Solutions, to UK-based Cohort plc. The two parties have settled on an enterprise value of $144 million, subject to customary adjustments. FIRB approval has already been obtained by Cohort. As a result, completion of the transaction is expected within six months. Management advised that the divestment aligns with its transformation strategy to focus on commercialising its substantial intellectual property and growing its core product offerings in the areas of Remote Weapon Systems, High Energy Laser Weapons, and Space Control.
GQG Partners Inc (ASX: GQG)
The GQG Partners share price is bouncing back from a selloff on Thursday and is up 10% to $2.34. Investors were selling off the fund manager's shares yesterday amid concerns over its investments in the Adani Group. Goldman Sachs sees this selling as a buying opportunity, noting that Adani Group only makes up a small amount of its profits. In light of this, the broker has held firm with its buy rating and $3.00 price target on GQG shares. It said: "[A] 10-50% drop in the value of Adani assets would lead to a -1.3% to -6.6% impact on FY25E NPAT. Such moves would imply the sell-off has been overdone with the stock now trading at ~8.5x FY25 consensus earnings (albeit on unchanged earnings) v historical average of ~11x."
Mineral Resources Ltd (ASX: MIN)
The Mineral Resources share price is up 3% to $34.86. This may have been driven by a broker note out of Citi this morning. According to the note, the broker has taken its sell rating off the mining and mining services company's shares and upgraded them to neutral with a $35.00 price target. It made the move on valuation grounds.
The post Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today appeared first on The Motley Fool Australia.
Citigroup is an advertising partner of Motley Fool Money. 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 Electro Optic Systems and Goldman Sachs Group. 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 Scott Phillips.
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