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?

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Three S&P/ASX 200 Index (ASX: XJO) shares just earned substantial broker upgrades.

One is involved in cutting-edge medical treatments.

One runs Australia's biggest lotteries.

And the third is a major iron ore producer.

Which ASX 200 shares are we talking about?

Read on!

(Broker data courtesy of The Australian.)

Three ASX 200 shares with boosted outlooks

The first ASX 200 share getting a sizeable broker upgrade is Champion Iron Ltd (ASX: CIA).

Shares in the iron ore miner are down 1.8% today, trading for $6.39 apiece. That leaves the Champion Iron share price up 3% over 12 months. Champion Iron shares also trade on a 2.4% unfranked trailing dividend yield.

CSLA believes there's some strong potential for share price gains ahead. The broker raised Champion Iron to a buy rating with a $7.90 price target. That's almost 24% above current levels.

The most recent price sensitive news from the company was released on 31 May. In a promising growth sign, the miner reported record-high earnings before interest, taxes, depreciation and amortisation (EBITDA) of C$553 for FY 2024. That was up 11% from FY 2023.

Which brings us to the second ASX 200 share scoring a broker upgrade, the Lottery Corp Ltd (ASX: TLC).

Shares in Australia's biggest lottery company are up 0.8% today at $5.17. That sees the Lottery Corp share price up 2% over 12 months. Lottery Corp shares also trade on a 2.7% fully franked dividend yield.

Macquarie has a positive outlook for the stock.

The broker raised Lottery Corp to an outperform rating with a $5.50 price target. That's more than 6% above the current share price.

The company could be set to benefit from the stage three tax cuts and new costs of living relief measures contained in the federal budget, which will see most Aussies pocketing significantly more money in the year ahead. Undoubtedly some of us will dip into that extra cash in hopes of turning it into millions with a winning lottery ticket.

Rounding off the list of ASX 200 shares receiving a significant broker upgrade is Telix Pharmaceuticals Ltd (ASX: TLX).

Shares in the biopharmaceutical company are down 0.3% today, changing hands for $16.41 apiece. The Telix Pharmaceuticals share price remains up an impressive 49% over 12 months.

And Bell Potter believes there are more outsized gains to be reaped.

The broker raised Telix Pharmaceuticals stock to a buy rating with a $19.00 price target. That represents a potential upside of almost 17% from the current share price.

Telix has achieved a number of commercially significant milestones with its medical products over the past few months. And the stock could substantially benefit with the rapid advance of AI helping to streamline clinical testing and new drug development.

This morning the ASX 200 share announced that it was pulling out of its intended initial public offering (IPO) on the Nasdaq. Judging by the muted share price reaction, management may have made the right call in pulling the plug after the Telix share price has surged 62% on the ASX in 2024.

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 Lottery, Macquarie Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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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