These 3 top ASX 200 shares just earned substantial broker upgrades. Here's why

Leading brokers just upgraded their rating for three top ASX 200 shares. But why?

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Three S&P/ASX 200 Index (ASX: XJO) shares could do a lot of the heavy lifting to help boost the benchmark index in the year ahead.

That's according to the analysts at UBS, Morgan Stanley and Jarden Securities.

Here's why the brokers are increasingly bullish on these big-name Aussie companies.

(Broker data courtesy of The Australian.)

Three ASX 200 stocks with boosted outlooks

The first ASX 200 share getting a broker upgrade is Lovisa Holdings Ltd (ASX: LOV).

Shares in the jewellery retailer are up 0.1% at the time of writing, trading for $33.29 apiece. That sees the Lovisa share price up an impressive 81% in 12 months. The stock also trades on a partly franked trailing dividend yield of 2.4%.

The Lovisa share price has now almost fully recovered from the sell-off in early June that followed the announcement that CEO Victor Herrero is stepping down on 31 May 2025. Herrero is seen as the driving force behind Lovisa's strong growth.

But with John Cheston, currently the CEO of Smiggle, taking over the reins, confidence in the company's growth potential looks to have returned.

While UBS has kept its neutral rating on Lovisa shares, the broker raised its price target by 18% to $32.50 a share. That's well above the $29.74 that shares closed at on 4 June, though below the current share price.

The second ASX 200 share earning a broker upgrade is Treasury Wine Estates Ltd (ASX: TWE).

Shares in the global wine company are up 0.6% today, changing hands for $12.51 apiece. That sees the stock up 9% in a year. Treasury Wine shares also trade on a partly franked trailing dividend yield of 2.7%.

Treasury Wine shares have leapt 12.6% since market close on 30 May amid increasing enthusiasm for Chinese markets reopening to Aussie wine imports. The company also impressed a number of brokers with yesterday's Penfolds update.

Jarden Securities envisions some more share price growth ahead. The broker raised Treasury Wine share to a buy rating with a $14.50 price target. That represents a potential upside of 16% from current levels.

Which brings us to the third ASX 200 share earning a broker upgrade, Woolworths Group Ltd (ASX: WOW).

Shares in the supermarket giant are up 2.0% today, trading for $33.67 apiece. That leaves the Woolies share price down 16% over 12 months. Woolworths shares also trade on a fully franked trailing dividend yield of 3.1%.

Woolworths shares could get a boost with the stage three tax breaks set to boost Aussie's take home pay.

Morgan Stanley has a bullish outlook for the supermarket chain. The broker raised its rating to overweight with a $37.00 price target. That's 10% above the current share price.

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. The Motley Fool Australia has recommended Lovisa 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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