Why these 3 ASX 200 stocks just scored sizeable broker upgrades

Top brokers have boosted their outlooks for these three ASX 200 companies. But why?

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published June 20, 2024 11:52 am AEST

Three S&P/ASX 200 Index (ASX: XJO) stocks just had their outlooks boosted by top brokers.

One is a property developer.

One is leading the technology charge in the logistics space.

And the third is focused on mortgage lending insurance.

And if the brokers have this right, all three ASX 200 stocks could deliver some healthy returns in the year ahead.

(Broker data courtesy of The Australian.)

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements — Image source: Getty Images

Three ASX 200 stocks with boosted outlooks

The first ASX 200 stock getting a sizeable broker upgrade is WiseTech Global Ltd (ASX: WTC).

Shares in the logistics software provider are up 0.3% at the time of writing to $92.75. That sees the WiseTech share price up 21% in 2024. The stock also trades on a slender, fully franked trailing dividend yield of 0.2%.

CLSA forecasts a lot more outperformance to come. The broker raised WiseTech shares to a buy rating with a $112.00 price target. That's almost 21% above current levels.

The WiseTech share price could catch some tailwinds next week when the stock joins the exclusive S&P/ASX 50 Index. That move is part of the S&P Dow Jones Indices June quarterly rebalance.

Which brings us to the second ASX 200 stock earning a broker upgrade, property investor, developer and manager Dexus (ASX: DXS).

The Dexus share price is down 0.9%% at time of writing at $6.48 a share. That sees the share price down 15% in 2024. Dexus shares trade on a partly franked trailing dividend yield of 7.7%.

Jarden Securities believes shares are trading at a bargain. The broker raised Dexus to a neutral rating with a $7.60 price target. That's more than 17% above current levels.

Rounding off the list of ASX 200 stocks earning broker upgrades is Lenders Mortgage Insurance provider Helia Group Ltd (ASX: HLI).

The Helia share price is rocketing 12.6% in morning trade today. Shares are currently swapping hands for $3.76 apiece. That leaves the Helia share price down 15% in 2024. The stock trades on a partly franked trailing dividend yield of 7.9%.

If you were watching the charts yesterday, you may have noticed that the Helia share price ended the day down a precipitous 20.9%, at $3.34 a share. The stock crashed after the company announced Commonwealth Bank of Australia (ASX: CBA) plans to review the lender's mortgage insurance (LMI) contract it has with Helia.

Macquarie believes today's rebound has further to run. The broker raised the ASX 200 stock to an outperform rating with a $3.90 price target.

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