The ASX 200 earnings season is well underway with brokers progressively rerating various S&P/ASX 200 Index (ASX: XJO) shares based on their FY23 half-year results.
Here we take a look at four ASX 200 shares that have received upgrades from the experts, courtesy of The Australian.
Cochlear Limited (ASX: COH)
Cochlear released a strong set of results for the six months ending 31 December. There was a 9% increase in sales revenue to a record $893 million but its underlying net profit fell 10% due to increased costs.
A strong balance sheet enabled the ASX 200 stalwart to maintain its interim dividend at $1.55 per share.
Cochlear also announced a progressive on-market buyback, starting with a $75 million program.
Cochlear reaffirmed its FY23 guidance. It expects an underlying net profit of between $290 million to $305 million, up 5% to 10% on FY22.
On the back of this news, Morgan Stanley raised its rating on Cochlear to equal weight. The broker has given Cochlear a share price target of $214.
RBC Capital rerated the stock to 'sector perform' with a $207 target. Jarden Securities cut Cochlear shares to neutral with a price target of $224.71.
The Cochlear share price is currently $225.02, down 0.63%. It is up 7.7% for the week.
Corporate Travel Management Ltd (ASX: CTD)
The ASX 200 travel share fell upon the release of the company's half-year results, despite a $15.7 million profit. Corporate Travel also reported $4.2 billion in total transaction value (TTV), up 102% year over year.
The company reported $51.3 million in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), up 182%, and a $15.7 million statutory net profit after tax (NPAT), up from a $10 million loss.
The ASX 200 share will pay an unfranked interim dividend of 6 cents per share.
Looking forward, Corporate Travel is expecting record full-year earnings with forecasted EBITDA of between $160 million and $180 million and an underlying profit before tax of between $120 million to $140 million.
Investment group CLSA raised its rating to reduce with a share price target of $16.50. The Corporate Travel Management share price is already well above this target at $18.18, up 5.37% today and up 10% for the week.
Vicinity Centres (ASX: VCX)
A large real estate investment trust (REIT) within the ASX 200, Vicinity Centres announced a 24.1% bump to funds from operations (FFO) at $357.1 million. This was primarily due to a 20.5% increase in net property income to $459.6 million.
The company said there was "continued strength of retail sales leading to improved cash collections, rental growth, and higher percentage rent".
The A-REIT has revised its FY23 guidance to FFO per share of between 14 cents to 14.6 cents.
Vicinity Centres declared an interim distribution of 5.75 cents per share, up 22.3% on 1H FY22.
JPMorgan upgraded its rating on the ASX 200 share to neutral with a price target of $2.10. CLSA cut its rating to sell with a target price of $1.88.
The Vicinity Centres share price is currently $2.10, up 0.48%. It is up 6% for the week.
Wesfarmers Ltd (ASX: WES)
Wesfarmers had a ripper result for 1H FY23, reporting a 27% jump in revenue to $22.56 billion and a 14.1% bump to NPAT at $1.38 billion. Basic earnings per share (EPS) came to $1.223 – a 14% rise.
The top 10 ASX 200 share will pay a boosted dividend of 88 cents per share, up 10% on 1H FY22.
Macquarie has raised its rating to neutral with a price target of $56.70, up 23%. This implies a potential 11% upside for Wesfarmers investors, with the share price currently $50.96, down 0.7% today.
Jarden Securities went the other way and cut its rating to neutral with a price target of $46.
The Wesfarmers share price is up 3.7% for the week.
