4 ASX 200 shares just upgraded by brokers

One broker is tipping significant upside for an ASX 200 mining blue chip.

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Key points
  • ASX 200 shares are recovering from their 55-point drop shortly after the open today but are still in the red overall 
  • Brokers have just upgraded four ASX 200 shares 
  • Goldman Sachs is tipping a 13.5% upside for the BHP share price over the next 12 months 

S&P/ASX 200 Index (ASX: XJO) shares are recovering from this morning's 55-point dip shortly after the open.

But they remain in the red at the time of writing.

ASX 200 shares are currently sitting at 7,183.2 points, down 0.2%.

As reported in The Australian today, brokers have upgraded the following four ASX 200 shares.

Let's take a look.

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

The BHP share price is currently $43.96, up 1.6% for the day so far.

Goldman Sachs has increased its rating on the ASX 200 mining share to buy with a price target of $49.90. This implies a potential upside of 13.5% over the next 12 months.

The broker has now incorporated the value of BHP's acquisition of Oz Minerals into its pricing. It thinks there is good value in these blue-chip ASX 200 shares right now.

Goldman says:

… we upgrade BHP to Buy (from Neutral) based on attractive valuation after the recent ~15% drop in the stock price since January.

The slide in share price is due to the recent drop in iron ore and copper prices on the back lower than expected Chinese steel demand and developed market copper demand in 1Q.

BHP shares are down 3% in the year to date.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is currently $20.89, up 0.4% for the day so far.

Morgans has raised the ASX 200 travel share to add; however, Jefferies has gone the other way.

Jeffries cut its rating to underperform with a 12-month share price target of $18.

The ASX 200 travel share added 2% yesterday after the company updated its guidance.

Flight Centre is now targeting between $270 million and $290 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA).

Flight Centre also reported a record-breaking month for March.

Total transaction value (TTV) on its leisure and corporate legs surpassed $1 billion for the first time ever.

Flight Centre shares are up 45% over the year to date.

Amcor CDI (ASX: AMC)

The Amcor share price is currently $15, up 0.6% for the day so far.

JPMorgan has raised its rating on the ASX 200 packaging company to overweight with a share price target of $16.30.

Competing broker Jefferies has also raised its rating to hold with a price target of $14.

Amcor released its Q3 FY23 update yesterday, revealing a 34% decline in quarterly net income to US$177 million. This led to management downgrading its full-year earnings guidance.

Amcor now expects to deliver earnings per share (EPS) of between 72 US cents to 74 US cents. The previous guidance was 77 US cents to 81 US cents.

Amcor announced an unfranked dividend of 12.25 US cents to be paid on 20 June.

As we reported, the Amcor share price dropped to a 52-week low of $14.68 yesterday.

The ASX 200 share has taken a 14% hit over the year to date.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay share price is currently $60.06, down 2.9% for the day so far.

CSLA has raised its rating on the ASX 200 healthcare share to accumulate with a $67 price target.

Meantime, Wilsons has cut its rating to market weight with a price target of $65.88.

Investors weren't too impressed with Ramsay's Q3 FY23 business update yesterday.

Ramsay reported a 6.6% bump in its financial year-to-date EBITDA.

This sent the Ramsay share price down 5%.

Ramsay told the market today that it's launching two medium-term note programs.

The ASX 200's shares are down 6.7% over the year to date.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in BHP Group and Flight Centre Travel Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Flight Centre Travel Group. 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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