7 ASX 200 shares upgraded to strong buy ratings

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Key points

  • The ASX 200 Index is down 0.63% as the Reserve Bank kept interest rates unchanged due to ongoing inflationary pressures and broader economic uncertainty. 
  • Among upgraded ASX 200 shares, Zip Co Ltd, NEXTDC Ltd, and Westgold Resources are highlighted with strong buy ratings, with Macquarie forecasting substantial price increases for Zip and NEXTDC.
  • Other upgraded stocks include Telix Pharmaceuticals, Orica, and Aristocrat Leisure, with some facing declines year to date but showing potential for recovery and growth as per broker ratings.

S&P/ASX 200 Index (ASX: XJO) shares are in the red on Melbourne Cup Day after the Reserve Bank kept interest rates on hold.

This was widely anticipated, with the markets pricing just a 7% chance of a rate cut today after inflation spiked in the September quarter.

In a statement, the RBA said:

The recent data on inflation suggest that some inflationary pressure may remain in the economy.

With private demand recovering and labour market conditions still appearing a little tight, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting.

Financial conditions have eased since the beginning of the year, but it will take some time to see the full effects of earlier cash rate reductions.

At the time of writing, ASX 200 shares are down 0.63% at 8,839.3 points.

Newly upgraded ASX 200 shares to buy

The following ASX 200 shares were upgraded to a 'strong buy' consensus rating on the CommSec platform in October.

A consensus rating is the average rating based on a number of analysts' opinions.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $3.88, down 1.65% on Tuesday.

The ASX 200 financials share is up 30% in the year to date.

Macquarie has just initiated coverage on the buy now, pay later (BNPL) provider with a buy rating.

The broker has a 12-month share price target of $4.85 on Zip.

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is currently $5.34, up 0.47%.

The ASX gold share is up 85% in the year to date.

Like all ASX 200 gold shares, Westgold has benefitted from the soaring gold price over the past two years.

Macquarie has an outperform rating on Westgold Resources shares with a 12-month price target of $7.40.

French bank Societe Generale SA predicts the gold price will reach US$5,000 per ounce by the end of next year.

NEXTDC Ltd (ASX: NXT)

The NEXTDC share price is $16.51, up 4.4% today.

The ASX technology share is up 10% in the year to date.

Macquarie is among the brokers recommending that investors buy NEXTDC shares.

The broker has a price target of $20.90 on NEXTDC shares.

Worley Ltd (ASX: WOR)

The Worley share price is $14.10, down 0.95%.

The ASX 200 industrials share is up 3.2% in the year to date.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is currently $15.78, down 0.2% on Tuesday.

The ASX 200 healthcare share is down 34% in the year to date.

Bell Potter has a buy rating on the radiopharmaceuticals company with a price target of $23.

Orica Ltd (ASX: ORI)

The Orica share price is $22.34, up 0.9% on Tuesday.

The ASX 200 materials share is up 35% in the year to date.

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat share price is $63.37, down 1.1% on Tuesday.

The ASX consumer discretionary share is down 8% in the year to date.

Macquarie has an outperform rating on Aristocrat with a share price target of $75.

Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended 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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