Brokers have been busy once again upgrading and downgrading countless ASX shares.
Two shares which have been upgraded to buy ratings by brokers this week are listed below. Here's why brokers are bullish on them:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgans, its analysts have upgraded the regional bank to an add rating from neutral with a $12.00 price target on its shares. The broker appears to believe that the bank is in a position to pay a special dividend in the near future thanks to its surplus franking credits and strong capital position. Furthermore, the broker believes that Bank of Queensland also has the opportunity for further capital management initiatives due to its conservative CET1 target of 9.25%. Whilst the bank wouldn't be my first pick in the banking sector, I do think Morgans makes some valid points. This could make it a good investment option for investors in search of income.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A note out of the Macquarie Group Ltd (ASX: MQG) equities desk reveals that its analysts have upgraded the airport operator to an outperform rating from neutral. The broker has also lifted the price target on Sydney Airport's shares from $6.40 to $6.85. According to the note, the broker has reevaluated the airport operator's outlook and appears confident that it is capable of maintaining its current growth at least until the new Western Sydney Airport opens in 2026. Furthermore, Macquarie believes that Sydney Airport is undervalued in comparison to industry peer Auckland International Airport Limited (ASX: AIA), especially given its stronger outlook for international passenger numbers growth. I would have to agree with Macquarie on this one and say that Sydney Airport could be a great option for investors right now.
