In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another very disappointing decline. At the time of writing, the benchmark index is down 2.3% to 6,977.6 points.
Four ASX shares that are not letting that hold them back are listed below. Here's why they are charging higher:
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A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is up over 7% to $5.46. This follows reports that the infant formula company could be a takeover target of Canadian dairy giant Saputo. This comes amid speculation that Saputo is on the verge of announcing a major acquisition in the Australian market. The report appears to overlook the fact that A2 Milk is a New Zealand company.
Baby Bunting Group Ltd (ASX: BBN)
The Baby Bunting share price is up over 5% to $5.06. This is despite there being no news out of the baby products retailer on Tuesday. Though it is worth noting that a number of brokers have buy ratings and price targets materially above today's levels. This includes Morgans with an add rating and $6.20 price target.
Codan Limited (ASX: CDA)
The Codan share price has jumped 18% to $9.85. This follows the release of a trading update from the metal detector and electronic products company. Codan revealed that a strong finish to the half led to it recording sales of $257 million for the six months ended 31 December. This represents a 32% improvement over the prior corresponding period.
Sezzle Inc (ASX: SZL)
The Sezzle share price is up over 9% to $2.34. This follows news that Zip Co Ltd (ASX: Z1P) is interested in acquiring its buy now pay later rival. This morning both companies confirmed that they are in talks regarding a transaction. However, no details have been provided in respect to financial terms. In addition, both companies have warned that the talks are at an early stage and there is no guarantee that a deal will materialise.
