3 ASX 300 shares just rerated by leading brokers

Top brokers just changed their views on these three ASX 300 shares. But why?

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With the S&P/ASX 300 Index (ASX: XKO) soaring 0.7% today, we take a look at three ASX 300 shares that just got rerated by top brokers.

Two for the better.

One for the worse.

Here's what's happening.

(Broker data courtesy of The Australian.)

Two ASX 300 shares earning broker upgrades

The first ASX 300 share earning a broker upgrade is global wine company Treasury Wine Estates Ltd (ASX: TWE).

After gaining 5.3% yesterday, Treasury Wine shares are up 1.0% today, trading for $12.12 apiece. That sees the Treasury Wine share price up 13.2% so far in 2024.

Atop those share price gains, the ASX 300 share trades on a partly franked trailing dividend yield of 2.8%.

Investors have been bidding up the stock following Monday night's bullish update on the growth opportunities in its North American markets. Management also reaffirmed the company's full-year guidance for FY 2024.

Barrenjoey has raised Treasury Wine to a 'neutral' rating. But following five consecutive trading days of gains, the broker's $11.50 share price target is more than 5% below current levels.

Which brings us to the second ASX 300 share getting a broker upgrade, jewellery retailer Lovisa Holdings Ltd (ASX: LOV).

Earlier this week, Lovisa was downgraded by numerous brokers, including Barrenjoey, Citi, Morgan Stanley and Canaccord.

That came after the company announced on Monday that CEO Victor Herrero will be stepping down on 31 May next year. With Herrero widely credited for helping drive the company's strong outlet growth in recent years, investors sent the stock crashing 10.4% on Monday and another 2.2% on Tuesday.

But following Wednesday's rebound and another 2.0% intraday gain today, the Lovisa share price has recouped much of those losses to be trading for $31.15. That sees the ASX 300 share up 55.9% in 12 months. Lovisa shares also trade on a partly franked trailing dividend yield of 2.6%.

And Macquarie believes the company can continue to grow. The broker raised Lovisa to an 'outperform' rating with a $33.70 price target. That represent a potential upside of more than 8% from current levels.

Rounding off the list…

One stock getting downgraded

The ASX 300 share getting hit with a broker downgrade is online-only furniture and homeware retailer Temple & Webster Group Ltd (ASX: TPW).

The Temple & Webster share price is up 0.6% today at $9.53. That sees the stock up a whopping 102% over 12 months.

While Citi still sees more growth potential from here, the broker reduced its target price by 10% to $11.00 a share.

That still represents a potential upside of more than 15% from today's levels.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Lovisa, Macquarie Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lovisa, Temple & Webster Group, and Treasury Wine Estates. 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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