The S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday and pushing higher. At the time of writing, the benchmark index is up 0.15% to 8,243.3 points.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is up 20% to 13.75 cents. This follows news that the rare earths developer has signed a binding term sheet with the National Reconstruction Fund Corporation (NRFC) for a $200 million investment commitment through the issue of unsecured convertible notes. The NRFC invests to diversify and transform Australia's industry and economy. It has $15 billion to invest using direct loans, equity investments and loan guarantees. The release notes that the funding will be used to support the development of the Nolans Project in the Northern Territory.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is up 11% to $1.75. Investors have been buying the baby products retailer's shares after it released a first half update. Baby Bunting reported comparable store sales growth of 2.2% for the half. This was driven largely by second quarter comparable store sales growth of 4.5%. The retailer also revealed that it expects to report a first half gross profit margin of 39.8%, up 260 basis points on the prior corresponding period. Combined, a pro forma net profit after tax of $4.8 million is expected for the first half. This represents a 37% increase on the same period last year. Looking ahead, management has reaffirmed its guidance. It is forecasting FY 2025 pro forma net profit after tax in the range of $9.5 million to $12.5 million.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is up 6% to $40.70. This appears to have been driven by a broker note out of UBS. This morning, the broker has taken its sell rating off the quick service restaurant operator's shares, upgraded its rating to neutral, and lifted its price target to $40.00.

PWR Holdings Ltd (ASX: PWH)

The PWR Holdings share price is up 3% to $7.85. Yesterday, this advanced cooling products and solutions company revealed that its North American subsidiary, C&R Racing, has secured a US$5.5million (~A$8.9 million) order to supply advanced cooling solutions for a US government project. Goldman Sachs was pleased. It thinks that this announcement will be "the first of a number of long-term opportunities in the A&D division with the emerging eVTOL space providing a material opportunity as it continues to progress towards regulatory approval and production capacity is built out to meet customer demand." Goldman has a buy rating and $9.10 price target on its shares.