These 2 ASX 200 stocks just scored substantial broker upgrades

Top brokers foresee some significant gains from these two ASX 200 stocks. But why?

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Two S&P/ASX 200 Index (ASX: XJO) stocks just scored substantial broker upgrades.

One of the companies has already been on a tear over the past year, while the other has struggled.

But according to top brokers, the next 12 months could see them deliver share price gains of 11% and 16%, respectively. And that doesn't include the dividends they both pay.

Which ASX 200 stocks are we talking about?

Read on!

(Broker data courtesy of The Australian.)

Two ASX 200 stocks to buy

The first ASX 200 stock just earning a broker upgrade is financial technology company Hub24 Ltd (ASX: HUB).

The Hub24 share price is down 0.2% in late morning trade today, at $45.98. Shares are up a whopping 76% in a year, making it the third-best-performing ASX 200 share in FY 2024. Hub24 shares also trade on a fully franked trailing dividend yield of 0.8%.

Despite the recent share price surge, Bell Potter foresees more outperformance ahead. The broker gave the ASX 200 stock a buy rating with a $53.20 price target. That's almost 16% above current levels.

At its most recent half-year results, Hub24 reported a 14% year on year increase in total revenue, which came in at $156.7 million for the six months.

Which brings us to the second ASX 200 stock that just scored a broker upgrade, property and infrastructure group Lendlease Group (ASX: LLC).

The Lendlease share price is up 0.9% today at $5.68 a share. Lendlease shares are down 28% in a year. The stock also trades on a partly franked trailing dividend yield of 3.1%.

Citi believes that the sell-off has run its course. The broker raised Lendlease to a buy rating, while maintaining its $6.30 price target. That represents an 11% potential upside from the current share price.

Citi is upbeat about Lendlease's ongoing international asset sales, expected to bring in some $4.5 billion.

The broker said this week's AU$480 million (US$320 million) sale of the ASX 200 stock's US Military Housing business came in ahead of expectations.

According to Citi analyst Suraj Nebhani (quoted by The Australian):

While there is uncertainty around the future capital receipts from Lendlease's asset sale program, we see the shares as sufficiently discounted here and providing strong value upside.

Moreover, the progress on asset sales and capital received to date has been encouraging, and we therefore see upside to Lendlease shares from current pricing.

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 Hub24. The Motley Fool Australia has recommended Hub24. 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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