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Two well-known S&P/ASX 200 Index (ASX: XJO) shares were just upgraded by leading brokers.
Both stand to potentially benefit from the rapid advancement of artificial intelligence (AI). And both have already handed their shareholders some sizeable one-year gains.
Which ASX 200 shares are we talking about?
Read on!
(Broker data courtesy of The Australian.)
Two ASX 200 shares earning broker upgrades
The first ASX 200 share earning a broker upgrade is WiseTech Global Ltd (ASX: WTC).
Shares in the logistics software provider are up 2.3% at the time of writing, trading for $99.12 apiece. That sees shares in the tech stock up more than 24% in a year.
WiseTech shares also trade on a slender, fully franked dividend yield of 0.2%.
And Bell Potter foresees some modest further gains ahead.
The broker raised its price target for WiseTech by 8% to $100.00 a share.
WiseTech shares could get a boost during the final week of the month. On 24 June the company joins the acclaimed S&P/ASX 50 Index. That’s part of the S&P Dow Jones Indices June quarterly rebalance.
Which brings us to the second ASX 200 share getting a broker upgrade today, Seek Ltd (ASX: SEK), which owns and operates Australia’s biggest online jobs classified website.
The Seek share price is up 3.0% at the time of writing, with shares trading for $23.51 apiece. That puts the Seek share price up 8% in a year.
Seek shares also trade on a fully franked trailing dividend yield of 1.8%.
And JP Morgan expects some sizeable potential gains over the year ahead.
The broker raised Seek to an overweight rating with a $26.50 share price target. That’s almost 13% above current levels.
Last week, 5 June, the ASX 200 share grabbed investors’ attention when management announced the company had entered into a binding agreement to sell 98.2% of its stake in OCC Mexico and all of its stake in Catho Online to Red Arbor Holding.
Seek will receive US$85 million (AU$128 million) for these assets. The company expects the transaction to be complete by the end of the month and intends to use the funds to pay down some debt.
The Seek share price closed up 4.9% on the day, despite the company forecasting a $15 million to $35 million net loss on sale after tax from the divestment.
That’s likely because the ASX 200 share reported it does not expect the sale of OCC Mexico and Catho Online will result in any material changes to its FY 2024 earnings guidance.