Four S&P/ASX 200 Index (ASX: XJO) shares have just gained some sizeable upgrades from leading brokers.
The improved outlook came on the heels of the companies' earnings results.
The brokers forecast these stocks could leap as much as 13% over the coming year. Atop those potential share price gains, two of the companies also just declared all-time high dividends.
So, which ASX 200 shares could charge higher?
I'm glad you asked!
(Broker upgrade figures, courtesy of The Australian.)
Image source: Getty Images
These ASX 200 shares could leap higher in 2024
The first ASX 200 share getting an upgrade is Ampol Ltd (ASX: ALD).
The energy stock reported its full calendar year 2023 results on Monday.
Highlights included a 2% year on year increase in earnings before interest and tax (EBIT) – excluding significant items – which came in at $1.30 billion. The company also reported all-time high total sales volumes of 28.4 billion litres in 2023, up 17% from 2022.
And Ampol declared a record high, fully franked final dividend of $1.80 per share.
Macquarie appears impressed with the company's full-year performance and outlook. The broker raised its target price by 11% to $42.50 a share. That represents a potential upside of 13% from current levels.
Cochlear Ltd (ASX: COH) also received a significant upgrade.
The cochlear implant device manufacturer reported its half-year results yesterday.
Highlights included a 20% year on year increase in revenue (in constant currency terms) to $1.11 billion. And underlying net profit was up 21% for the six months to $192 million.
This saw the ASX 200 share declare a record interim dividend of $2 per share, franked at 70%. Management also forecast 10% to 15% growth in the company's cochlear implant units for the full 2024 financial year.
On the back of these result, Wilson raised its price target for Cochlear shares by 15% to $365 a share. This represents an 11% potential upside from current levels.
What other ASX stocks earned broker upgrades?
The third ASX 200 share earning a sizeable broker upgrade is GPT Group (ASX: GPT).
On Monday, the real estate investment trust (REIT) announced its full-year results for 2023.
GPT reported a net loss after tax of $240 million, primarily driven by investment property revaluations of negative $819 million. But funds from operations (FFO) were in line with guidance at $601 million.
And GPT pleased passive income investors with an unfranked 12.5 cent per share final dividend. That brought the full-year payout to 25 cents per share, in line with 2022.
With Aussie interest rates now likely at their peak, GPT forecasts positive leasing growth for its retail and logistic portfolios, while the office segment could continue to struggle.
On the back of these results, JPMorgan raised GPT Group to an overweight rating with a $4.90 price target. That represents a potential 11% upside from current levels.
Which brings us to the fourth ASX 200 share gaining a broker upgrade, Westpac Banking Corp (ASX: WBC).
The big four bank stock released its quarterly results on Monday. And the bank revealed it's holding up well despite inflationary pressures and ongoing competition in the mortgage markets.
Westpac's unaudited net profit (excluding notable items) came in at $1.8 billion, which was in line with the prior corresponding period.
As expected, core net interest margin (NIM) slipped by 0.04% from 2H 2022 to 1.80%.
And with only 31% of the bank's $1.5 billion on market share buyback completed, the Westpac share price could find further support as more shares are taken off the market.
On the back of these results, Barrenjoey raised Westpac shares to an overweight rating with a $26 price target. That represents a potential upside of 1% from current levels.
Westpac also trades on a 5.5%, fully franked trailing dividend yield.
