These 2 ASX 200 shares just got big upgrades from top brokers

The brokers believe both ASX 200 shares are undervalued at current levels.

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Two S&P/ASX 200 Index (ASX: XJO) shares just received some sizeable upgrades from leading brokers.

Health and safety products company Ansell Ltd (ASX: ANN) closed on Monday trading for $23.89 a share.

A number of brokers are forecasting a significant potential uplift from here, according to The Australian.

Jeffries is among the most bullish on the ASX 200 share. The broker's analysts raised the Ansell stock to a buy rating with a price target of $30.85 a share. That's more than 29% above Monday's closing price of $23.89.

Ansell shares are up 11.1% today, currently trading for $26.53 a share.

The second ASX 200 share receiving an upgraded outlook is agribusiness Elders Ltd (ASX: ELD).

Elders stock was raised to an add rating by Morgans Financial with a price target of $9 a share. That represents a potential 21% upside from Monday's close of $7.43.

Elders shares are up 5.7% today, currently trading for $7.85 per share.

Here's what's been happening with the two upgraded ASX 200 shares.

ASX 200 shares tipped for outsized gains

Turning to Elders first, the ASX 200 share had an absolute horror day yesterday, with the share price crashing 24.4% by Monday's closing bell.

This followed on a disappointing trading update that came in significantly below consensus expectations.

The company's trading performance has been hampered by uncooperative weather conditions and lower-than-expected sheep and cattle prices. This saw management dial down full-year earnings estimates, now expected to be around 18% to 30% lower than the prior year.

Turning back the clock to Friday prior to the update's release, the Elders share price closed at $9.83. Meaning the upgrade from Morgans Financial really values the stock at some 8% less than at Friday's close.

Still, if the broker has this right, it could prove to be a profitable 'buy the dip' scenario.

As for Ansell, the ASX 200 share was in a trading halt yesterday ahead of reporting on a new acquisition and capital raise.

The company revealed it has entered into a binding agreement to acquire 100% of the assets of United States-based Kimberly-Clark's Personal Protective Equipment (KCPPE) business.

You may not have heard of Kimberly-Clark. But you've likely heard of some of their global brands, like Huggies and diapers and Kleenex tissues.

That announcement was released this morning and looks to be fuelling today's rocketing Ansell share price.

The ASX 200 share reported it has successfully completed a $400 million (US$263 million) fully underwritten institutional share placement at a price of $22.45 per share.

Management said the proceeds will be used to partially fund the acquisition of 100% of the assets that constitute KCPPE from Kimberly-Clark Corporation for US$640 million.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell and Elders. 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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