Why these 2 ASX 200 shares just scored broker upgrades

Top brokers have increased their share price forecasts for these two ASX 200 stocks.

| More on:
Happy man working on his laptop.

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

Two well-known S&P/ASX 200 Index (ASX: XJO) shares were just upgraded by leading brokers.

Both stand to potentially benefit from the rapid advancement of artificial intelligence (AI). And both have already handed their shareholders some sizeable one-year gains.

Which ASX 200 shares are we talking about?

Read on!

(Broker data courtesy of The Australian.)

Two ASX 200 shares earning broker upgrades

The first ASX 200 share earning a broker upgrade is WiseTech Global Ltd (ASX: WTC).

Shares in the logistics software provider are up 2.3% at the time of writing, trading for $99.12 apiece. That sees shares in the tech stock up more than 24% in a year.

WiseTech shares also trade on a slender, fully franked dividend yield of 0.2%.

And Bell Potter foresees some modest further gains ahead.

The broker raised its price target for WiseTech by 8% to $100.00 a share.

WiseTech shares could get a boost during the final week of the month. On 24 June the company joins the acclaimed S&P/ASX 50 Index. That's part of  the S&P Dow Jones Indices June quarterly rebalance.

Which brings us to the second ASX 200 share getting a broker upgrade today, Seek Ltd (ASX: SEK), which owns and operates Australia's biggest online jobs classified website.

The Seek share price is up 3.0% at the time of writing, with shares trading for $23.51 apiece. That puts the Seek share price up 8% in a year.

Seek shares also trade on a fully franked trailing dividend yield of 1.8%.

And JP Morgan expects some sizeable potential gains over the year ahead.

The broker raised Seek to an overweight rating with a $26.50 share price target. That's almost 13% above current levels.

Last week, 5 June, the ASX 200 share grabbed investors' attention when management announced the company had entered into a binding agreement to sell 98.2% of its stake in OCC Mexico and all of its stake in Catho Online to Red Arbor Holding.

Seek will receive US$85 million (AU$128 million) for these assets. The company expects the transaction to be complete by the end of the month and intends to use the funds to pay down some debt.

The Seek share price closed up 4.9% on the day, despite the company forecasting a $15 million to $35 million net loss on sale after tax from the divestment.

That's likely because the ASX 200 share reported it does not expect the sale of OCC Mexico and Catho Online will result in any material changes to its FY 2024 earnings guidance.

JPMorgan Chase 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 JPMorgan Chase and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Seek. 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

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
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 clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX shares could rise 25% to ~50%

Big returns could await buyers of these shares according to analysts.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Brokers name 3 ASX shares to buy now

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

Read more »

rising asx share price represented by man with arms raised against blackboard featuring images of dollar notes
Broker Notes

Why these 3 ASX 200 shares just earned substantial broker upgrades

Top brokers just increased their share price forecasts for these three ASX 200 shares. But why?

Read more »

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today
Broker Notes

See why this broker just upgraded South32 shares to a buy

Commodity prices continue to create tailwinds for ASX stocks.

Read more »

Keyboard button with the word sell on it.
Broker Notes

Sell these ASX 200 stocks now: Goldman Sachs

The broker is warning investors that these stocks could tumble from current levels.

Read more »

A man rests his chin in his hands, pondering what is the answer?
Broker Notes

Can Soul Patts shares beat the market over the next 12 months?

One leading broker believes the investment house could deliver good returns.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

3 under the radar ASX shares to buy this month

Analysts at Bell Potter think these lesser known shares could be top options.

Read more »