S&P/ASX 200 Index (ASX: XJO) shares are 1.6% lower at 8,733.6 points on Friday.
Every one of the 11 market sectors is in the red today.
Losses range from 0.03% for the ASX communications sector to 2.47% for property shares.
The world is waiting for Iran's response to a US peace plan that would end the war and reopen the Strait of Hormuz.
Meanwhile, brokers have indicated new confidence in several ASX 200 shares with rating upgrades this week.
Let's take a look.
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Lottery Corporation Ltd (ASX: TLC)
The Lottery Corporation share price is $5.33, down 0.5% today.
This ASX 200 consumer discretionary share has risen 2% in the year to date (YTD).
Morgans upgraded Lottery Corporation shares from hold to accumulate yesterday.
The broker raised its 12-month price target from $5.70 to $6, suggesting 12% upside from here.
Morgans said:
The Lottery Corporation (TLC) has secured a 40-year extension of its Victorian Public Lottery Licence to 30 June 2068, paying a $1.145bn upfront premium funded entirely by debt.
The duration and timing of the renewal was a mild surprise given the licence was historically offered on 10-year terms and wasn't expiring until June 2028.
We view the deal as strategically positive, but near-term earnings absorb the cost.
Light & Wonder Inc (ASX: LNW)
The Light & Wonder share price is $110.18, up 7.3% today.
Over the past month, this ASX 200 gaming share has fallen 13%.
Morgans upgraded Light & Wonder shares to a buy rating yesterday.
The broker shaved its 12-month price target from $140 to $138.
This implies a healthy potential 25% upside ahead.
ANZ Group Holdings Ltd (ASX: ANZ)
The ANZ share price is $36.87, down 1.3% today.
Over the past month, this ASX 200 bank share has fallen 3.8%.
Morgans upgraded ANZ shares from a sell to trim rating this week.
The broker lifted its 12-month price target by 4% to $31.85.
This suggests a potential 13% downside ahead.
After reviewing the bank's 1H FY26 results, Morgans said:
1H26 revenues were flat on an underlying basis, but cost decline and credit impairment charges were better than expected.
Target price increased 4% to $31.85/sh, given 3-6% earnings upgrades and decision to recommence neutralising the DRP.
National Australia Bank Ltd (ASX: NAB)
The NAB share price is $38.53, down 2.5% today.
Over the past month, this ASX 200 financial share has fallen 13.5%.
Morgans upgraded NAB shares from a sell to a trim rating this week.
The broker lifted its 12-month price target by 4% to $36.10.
This implies a potential 6% moderation ahead.
Morgans said 1H FY26 earnings "were a mixed bag and a touch below expectations".
Westpac Banking Corp (ASX: WBC)
The Westpac share price is $37.84, down 1.9% for multiple reasons on Friday.
Over the past month, this ASX 200 bank share has fallen 9.8%.
Morgans upgraded Westpac shares from a sell to a trim rating this week.
The broker cut its price target by 3% to $33.07, implying a 13% fall ahead.
Morgans commented on Westpac's 1H FY26 results:
Strong volume momentum but earnings leverage dissipated with margin compression and credit risk pressures.
TechnologyOne Ltd (ASX: TNE)
The TechnologyOne share price is $28.37, up 3.4% on Friday.
Over the past month, this ASX 200 tech share has fallen 3.6%.
Bell Potter upgraded TechnologyOne shares to a buy rating yesterday.
The broker raised its 12-month price target from $31 to $31.75, suggesting 12% upside ahead.
Atlas Arteria Ltd (ASX: ALX)
The Atlas Arteria share price is $4.80, down 0.1% today.
This ASX 200 industrials stock surged recently on news of a hostile takeover bid from IFM Investors.
Atlas Arteria's independent directors have recommended that investors reject the $4.75 per share offer.
Morgans upgraded Atlas Arteria shares from trim to hold this week.
The broker said:
ALX recommended its investors ignore IFM's hostile off-market takeover bid, citing the offer price as too low, the timing opportunistic, and the offer highly conditional. It also disclosed it initiated a sale process for its interest in Chicago Skyway which, if successful, could be value accretive (at least to our valuation).
While the Chicago Skyway divestment process is underway we moderate our rating from TRIM to HOLD given potential for value realisation above what we consider to be the intrinsic value of the asset and hence driving our ALX valuation up close to where the share price is currently trading.
Morgans has a share price target of $4.22 on the toll roads operator.
This suggests a 12% downside from here.
