In a whirlwind of a day for the S&P/ASX 200 Index (ASX: XJO), shares are being divided. Financials and traditional value shares are pushing higher, while tech is slaughtered.
However, in the mess of it all, 2 ASX shares have been upgraded by leading brokers.
2 ASX shares getting upgraded
ALS Ltd (ASX: ALQ)
ALS Ltd is an ASX share that has performed solidly over the year, adding nearly 34% over the period. However, the global testing, inspection, and certification company has been caught up in the selloff since mid-February. As a result, the share price is nearly 20% off its February high, trading at $9.54 today.
Investors were buying up the share yesterday, following the announcement of the company acquiring Investiga. The purchase adds Investiga's pharmaceutical testing operations in Brazil and the east coast of the US to ALS.
This afternoon JP Morgan lifted its coverage on the ASX share to a 'neutral' rating. The broker noted the increase in geochemistry sampling activity and the acquisition as positives for the business. Subsequently, the price target was set at $9.80 a share for March 2022.
At the time of writing, ALS is trading down 0.9% to $9.46. The company's market capitalisation is now $4.61 billion.
Infomedia Ltd (ASX: IFM)
The Infomedia share price has been left battered and bruised in the recent ASX tech share thrashing. Prior to the February sell-off, the part cataloging software provider's share price had been hovering around $1.85. At that price, the share had only shaved off 7% since last year. However, the tech armageddon has left Infomedia's share price down 32% at $1.34.
It certainly didn't help when the company reported flat earnings growth in late February. Management put the poor result down to timing delays in negotiations and installations. Additionally, the reluctance to provide future guidance further rattled investors.
However, this hasn't stopped Bell Potter from raising its rating to a 'buy' on Infomedia. The broker is expecting double-digit earnings growth in both 2021 to 2022 and 2022 to 2023 for this ASX-listed share. Bell Potter believes the share is undervalued at $1.35, compared to its price target of $1.75, implying nearly 30% of upside on the current trading price.
At the time of writing, the Infomedia share price is flat at $1.33. The company's market capitalisation is now $499 million.
