Why these 7 ASX 200 shares received broker upgrades this week

A number of ASX 200 shares in the healthcare, construction, materials and travel sectors received broker upgrades this week.

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A number of S&P/ASX 200 Index (ASX: XJO) shares in the travel, materials, construction and healthcare sectors have received broker upgrades this week. This follows strong quarterly results and a general anticipated recovery within their respective sectors.

Austal Limited (ASX: ASB) 

Goldman Sachs retained its buy rating on Austal with a price target of $4.35 in anticipation that its annual general meeting commentary will reflect a strong earnings outlook. 

Beach Energy Ltd (ASX: BPT) 

Citi raised its Beach Energy share price target from $1.91 to $1.98 and retains a buy rating. The company’s quarterly production update was solid but slightly missed expectations. It anticipates upside from Beach Energy’s upcoming drilling results. 

Bluescope Steel Limited (ASX: BSL) 

A series of upgrades came in for the Bluescope Steel share price including: 

  • Citi raises price target from $14.00 to $16.00 
  • Credit Suisse raises price target from $15.55 to $16.95 
  • Macquarie raises price target from $16.20 to $19.05 
  • Morgan Stanley raises price target from $11.00 to $16.00 
  • UBS raises price target from $13.10 to $15.70 

This was on the back of the company’s strong first half results and anticipated benefit from fiscal stimulus measures in Australia and the US. 

CSR Limited (ASX: CSR)

Sticking to the theme of materials and construction, Credit Suisse upgraded the CSR share price target from $4.10 to $5.30. It expects fiscal stimulus measures to underpin earnings in the short-medium term. 

National Australia Bank Ltd (ASX: NAB)

The NAB share price received mixed broker opinions. Credit Suisse retained an outperform rating with a $21.30 price target and UBS retained a buy rating with a $20.50 price target. The brokers believe that the company is on top of the current situation and should continue to navigate sensibly through the crisis. 

Conversely, Macquarie retained an underperform rating with a $17.50 price target. While it considers the valuation attractive, it has concerns about earnings risks in the short-medium term. 

Qantas Airways Limited (ASX: QAN)

Morgan Stanley reiterated its overweight rating and retains its Qantas share price target of $4.90. It predicts that domestic capacity will improve to approximately 50% by Christmas but is highly dependent on state border re-openings. 

Resmed CDI (ASX: RMD) 

Morgan Stanley raised its Resmed share price target from $25.40 to $25.90. It believes that the company will continue to deliver strong growth despite the pandemic. 

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Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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