3 ASX 200 shares just upgraded by top brokers

The ASX 200 has opened in the red amid broker upgrades to three stocks.

Key points
  • The S&P/ASX 200 Index (ASX: XJO) has opened lower amid broker upgrades to three ASX 200 shares 
  • JP Morgan thinks the AGL share price will rise by 22% within 12 months
  • CLSA says the CSL share price will soar from yesterday's 52-week low to $313 per share within 12 months 

S&P/ASX 200 Index (ASX: XJO) shares have opened lower in Tuesday's trading. At the time of writing, the ASX 200 index is down 0.2%

Meanwhile, three ASX 200 shares have been upgraded by top brokers, as reported in The Australian today.

Let's see why these ASX 200 shares are in the broker's sights.

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AGL share price to rise 25% in 12 months, says JP Morgan

Despite the AGL Energy Limited (ASX: AGL) share price trading at two-year highs, JP Morgan thinks there's more growth to come. In fact, a lot more.

The broker has upped its rating on the utilities provider to overweight with a 12-month price target of $14.30. AGL shares opened Tuesday's session at $11.70, so this implies a potential upside of 22%.

The ASX utilities share has risen 43% in 2023. That's well beyond the performance of the S&P/ASX 200 Utilities Index (ASX: XUJ), which is up 10%.

Last month, AGL released an update revising its guidance higher for FY23 and FY24, helped along by rising electricity prices.

CSL share price to soar from yesterday's 52-week low

CSL Limited (ASX: CSL) shares fell to a new 52-week low of $255.87 yesterday.

This morning, CSL shares opened at $258.74, which is 0.17% down on yesterday's closing price.

But broker CLSA is among many brokers who are backing CSL shares to do great things over the next year.

The broker has increased its rating on CSL to buy with a $313 share price target.

Citi has the most ambitious share price target of $340 on the ASX 200 biotech. This implies about a 30% potential upside on the stock.

As we recently reported, Elston portfolio manager Leon de Wet thinks CSL shares are among three ASX 200 shares 'that should perform regardless of economic conditions'.

The Elston team has increased its exposure to non-cyclical shares like CSL.

de Wet says rapidly rising interest rates would "ultimately lead to slower growth", and this would flow through to the company earnings of many ASX shares.

NIB shares are a buy, says Citi

Our next broker upgrade among ASX 200 stocks is NIB Holdings Limited (ASX: NHF) shares.

Citi has raised its rating to buy with a 12-month share price target of $8.15 on NIB.

The NIB share price opened this morning at $8.29, so this upgrade is nothing too exciting in terms of price potential.

NIB shares are up about 7% in 2023, so they're outperforming the S&P/ASX 200 Health Care Index (ASX: XHJ), which is down about 2.4%.

Fidelity's Zara Lyons recently explained the four key elements to look for when selecting healthcare shares for investment.

She also likes NIB shares but her fund doesn't hold them now "primarily on valuation grounds".

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in James Hardie Industries Plc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet. The Motley Fool Australia has recommended PointsBet. 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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