3 ASX 300 shares receiving broker upgrades today (one with 25% potential upside)

This trio of ASX 300 stocks released their earnings results for 1H FY24 yesterday.

| More on:
A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising

Image source: Getty Images

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

ASX 300 shares are slightly lower on Tuesday afternoon, down 0.17% as earnings season continues.

As reported in The Australian, various stocks are receiving broker upgrades after the companies released their 1H FY24 earnings results yesterday.

Let's take a look at this trio in the ASX 300.

ASX 300 shares upgraded following half-year reports

Adairs shares upgraded as dividends resume

The Adairs Ltd (ASX: ADH) share price is $2.15, up 1.9% amid news of two broker upgrades today.

Morgans has raised its rating on the ASX 300 retail stock to add, with a 12-month share price target of $2.40. Wilsons has bumped up its rating to market-weight with a $2 price target.

Yesterday Adairs reported an 18.9% decline in statutory net profit after tax (NPAT) to $17.7 million for 1H FY24. Perhaps investors were expecting worse given the 13.35% rise in the Adairs share price yesterday.

Adairs also announced the resumption of dividends after not paying a final dividend in FY22. The ASX 300 retailer will pay a fully franked interim dividend of 5 cents per share (cps), down from 8 cps in 1H FY23.

Mayne Pharma share price up 22% in two days

The Mayne Pharma Group Ltd (ASX: MYX) share price is $6.57, up 8.87% at the time of writing.

Wilsons has raised its rating on the ASX 300 stock to overweight. However, its new 12-month share price target is well below today's value at $7.38.

Yesterday, Mayne Pharma reported a 43% increase in revenue to $188 million and underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $8 million. The 1H FY24 EBITDA contrasts starkly with last year's 1H FY23 EBITDA loss of $25.7 million.

Investors were pleased and pumped up Mayne Pharma shares by 13.74% during the session on Monday.

Wilsons tips 25% potential upside on ASX 300 healthcare share

The Nanosonics Ltd (ASX: NAN) share price is 4.94% higher on Tuesday at $2.76.

JP Morgan has upgraded the ASX 300 healthcare stock to neutral with a $2.80 share price target. Wilsons has also upgraded Nanosonics shares to overweight with a more ambitious $3.45 price target.

Yesterday, the infection prevention company reported a 2% decline in revenue to $79,638 million and a 41% decline in NPAT to $6,168 million in 1H FY24. As my colleague James reported, softer sales and significantly higher expenses put a drag on the company's earnings.

ASX 300 investors punished the stock yesterday to the tune of a 13.92% fall in the share price. Perhaps they overdid it, if today's near-5% bump is anything to go by.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs, JPMorgan Chase, and Nanosonics. The Motley Fool Australia has positions in and has recommended Adairs and Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Three happy office workers cheer as they read about good financial news on a laptop.
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 »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man looks surprised as a woman whispers in his ear.
Broker Notes

These ASX 200 shares could rise 20% to 40%

Analysts are tipping these shares to deliver market-beating returns over the next 12 months.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Leading broker upgrades Pro Medicus shares to buy rating

Analysts at Bell Potter think this tech stock is a top buy right now.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Broker Notes

3 reasons to buy Woolworths shares this month

Goldman Sachs thinks that now is the time to buy this retail giant.

Read more »

Investor sitting in front of multiple screens watching share prices
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

thoughtful investor sitting at computer
Healthcare Shares

What are brokers saying about CSL shares after the selloff?

The biotech giant's shares hit a 52-week low yesterday. Is this a buying opportunity?

Read more »