9 ASX stocks brokers upgraded to BUY last month

Selecting companies for your investment portfolio is a nuanced process that can involve any combination of fundamental, technical (and not so technical) research. There’s no single best way – which is why we regularly ask some of Australia’s most successful professional investors how they do it.

Our editorial team from across Market Index and Livewire also frequently publish educational guides detailing some of these, the most recent of these having proven a runaway success with readers.

There are also various functions under the surface of our websites, including the Broker Consensus tool on Market Index. Used by many investors as a way to help validate their views, this dataset is updated on the last day of each month based on the prior two months of recommendations.

In the following, I’ve selected nine stocks from across distinct sectors, where a broker has upgraded its rating to either BUY or OVERWEIGHT.

Note: The overall Broker Consensus rating hasn’t necessarily changed, only the rating provided by at least one individual broker. It also should be noted that the Market Index tool requires a minimum of three recommendations before they show on the website.

As always, the following list shouldn’t be considered recommendations. Before making any investment decision, do your own research and consult you’re an independent adviser where possible.

Materials

Mineral Resources (ASX: MIN)

The company's plan to close a couple of its local iron ore operations is the latest news from the miner. Since mid-May, Mineral Resources’ share price is down more than 30%.

• On 7 June, the broking team at Bank of America upgraded Mineral Resources to BUY from Neutral, with a price target of $82, up from $79.
• CLSA downgraded MIN to UNDERPERFORM from Outperform and cut its price target to $75 from $76.50 on 7 June
• Morgan Stanley upgraded the stock to OVERWEIGHT from Equal-weight and lifted its price target to $83 from $67.

Energy

Woodside Energy (ASX: WDS)

The local energy sector’s worst performer in FY24, Woodside has been nominated by several fund managers as a buying opportunity at current levels, its share price falling 18% in the 12-months to 30 June.

• Macquarie upgraded Woodside to OUTPERFORM on 12 June while leaving its price target at $32.
• Barrenjoey upgraded Woodside to NEUTRAL from Underweight, with a price target of $28.50 as of 6 May.
• Bank of America downgraded WDS to NEUTRAL from Buy and cut its price target to $30 from $33 on 4 April.

Consumer Discretionary

The Lottery Corporation (ASX: TLC)

Changes that will see more jackpots for customers was the big recent news from the company behind the Powerball lottery. This saw TLC upgraded by both Citi and Macquarie.

• Citi upgraded TLC to BUY from Neutral on 4 June, lifting its price target to $5.60 from $5.50.
• Macquarie upgraded the stock to OUTPERFORM from Neutral and increased its price target to $5.50 from $5.25 on 14 June.
• Morgans upgraded the stock to ADD from Hold on 31 May, lifting its price target to $5.60 from $5.40.

Consumer Staples

Collins Foods (ASX: CKF)

Fast-food stocks have been in the spotlight lately thanks to the high-profile IPO of Guzman Y Gomez on the ASX. The operator of KFC restaurants across Australia, Collins Foods reported that tougher trading conditions knocked sales in May and June.

CKF’s share price is down almost 30% in 2024 so far, but some believe this is overdone. Wilsons Advisory’s Greg Burke in April outlined three reasons he holds this view.

• UBS upgraded Collins Foods to BUY from Neutral on 26 June, lifting its price target to $11.50 from $10.95.
• Jarden upgraded CKF to OVERWEIGHT from Neutral on 3 May, increasing its price target to $10.25 from $10
• Citi downgraded the stock to SELL from Neutral on 1 March, with a price target of $10.60.

Technology

Wisetech Global (ASX: WTC)

The logistics software firm headed by Richard White was one of the ASX’s top-performing companies of FY24. White, founder and CEO, presented at the Morgan Stanley Australia Summit last month, as covered by Livewire’s Sara Allen. 

• CLSA upgraded Wisetech to BUY from Outperform on 20 June, lifting its price target to $112 from $99.
• E&P upgraded WTC to POSITIVE from Neutral, with a price target of $104.01 as of 16 April
• JPMorgan downgraded the company to NEUTRAL from Overweight, with a price target of $82 as of 22 February.

Communication Services

REA Group (ASX: REA)

The popular property listings portal’s share price rose 30% in FY24. A stock that is frequently mentioned as one of Australia’s highest-quality stocks – by the likes of contributors Rudi Filapek-Vandyck and Roger Montgomery – it also featured among the top 10 stocks according to MarketMeter research.

• Macquarie upgraded REA to OUTPERFORM from Neutral on 7 July, lifting its price target to $212 from $196.
• Citi upgraded REA to BUY from Neutral on 21 June, increasing its price target to $221 from $192.60
• CLSA upgraded the stock to OUTPERFORM from Sell, with a price target of $204 as of 10 May.

Healthcare

Resmed (ASX: RMD)

Potential disruption from competing drugs including Ozempic has pummelled Resmed’s share price in the last 12 months. RMD shares took another hit this week after another weight-loss drug trial yielded positive results.

Still, several fund managers believe the negative investor reaction is overdone. Forager’s Steve Johnson named RMD as his pick of the ASX healthcare sector in a recent Buy Hold Sell episode.

• CLSA upgraded Resmed to BUY from Outperform on 26 June but left its price target at $34.40
• Citi downgraded Resmed to NEUTRAL from Buy on 25 June, cutting its price target to $30.
• E&P downgraded the stock to NEUTRAL from Positive on 24 June, with a price target of $33.

Industrials

Brambles (ASX: BXB)

A local industrial name, Brambles was called out by MLC Asset Management’s Anthony Golowenko recently as one of the companies that has successfully navigated tougher economic conditions.

“We think BXB has entered into a period where we expect to see earnings growth and improved cash flow performance, which we think could underpin capital management at the FY24 result,” he said last month.

• Morgan Stanley upgraded Brambles to OVERWEIGHT from Equal-weight on 11 June, increasing its price target to $16.60 from $15.70
• Bank of America downgraded Brambles to NEUTRAL from Buy on 26 February
• Jefferies downgraded the stock to UNDERPERFORM from Hold on 25 February.

Real Estate

Lendlease (ASX: LLC)

The multi-national property company has embarked upon a major restructure to refocus on its domestic operations, after a long period of share price weakness. Lendlease’s latest project announcement – a $500 million mixed-use development in Sydney – is one of the first since management announced the strategic shift. 

• Citi upgraded LLC to BUY from Neutral on 2 July but left its price target at $6.30
• UBS downgraded the company to SELL from Neutral and cut its price target to $5.56 from $7.10 on 7 June.