Brokers raise ratings on these 2 ASX shares this afternoon

Here are 2 ASX shares that received an upgrade from brokers this afternoon. We take a look at why and what's been driving the prices.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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 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. 

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Infomedia. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Broker looking at the share price.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Broker Notes

Down 16% in 6 weeks: Is this ASX 200 share a bargain buy?

Bell Potter has given its verdict on this beaten down stock.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 enjoyed a strong start to the trading week today.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

1 ASX 200 dividend stock down 20% to buy right now

This beaten-up ASX share could be a top pick for dividends and stability.

Read more »

Man sitting in a plane looking through a window and working on a laptop.

2 cheap ASX 200 shares I'd buy in May

I think these stocks are too cheap to ignore.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher

These shares are starting the week strongly. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today

These shares are starting the week in the red. But why?

Read more »