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S&P/ASX All Ordinaries Index (ASX: XAO) shares are down 0.073% in early trading on Tuesday.
Meantime, The Australian reports that brokers have upgraded their ratings on these three ASX shares.
Let’s check them out.
3 ASX shares just upgraded by the experts
ASX communications share has ‘a very strong position’, says Citi
Citi has raised its rating on ASX large-cap communications share CAR Group Limited (ASX: CAR) from hold to buy. The broker has placed a 12-month price target of $39.80 on Car shares.
The broker expects double-digit earnings growth over the medium term. It is tipping earnings per share (EPS) growth of 17% for FY24 compared to the 13.2% achieved in FY23.
We’ll find out if Citi is right on 12 August when Car Group reports its full-year results.
Citi analyst Siraj Ahmed said:
While another RBA rate rise and weakening demand are risks to the Australian business, we see Car Group having a very strong position and expect it to deliver solid growth even in a tough environment.
Goldman Sachs also has a buy rating on Car shares. The broker recently raised its price target to $41.40.
As we recently reported, Car Group was the top-performing stock of the communications market sector in FY24. The Car share price surged by 48% over the financial year.
The ASX communications share is currently $35.89, up 2.08% today and 14.33% in the year to date.
Broker positive on ASX real estate share
JP Morgan has commenced coverage on ASX mid-cap property share PEXA Group Ltd (ASX: PXA). The broker has given the stock an overweight rating and a $15 price target over the next 12 months.
Late last month, the Australian Registrars National Electronic Conveyancing Council (ARNECC) ceased its interoperability program, which aimed to enable more competition for electronic conveyancing services. The news lifted PEXA shares by 2.06% on the day.
PEXA will release its full-year FY24 results on 21 August.
The PEXA share price is $14.21, up 3.57% on Tuesday and 28.83% in the year to date.
10% potential upside on ASX industrials share
Barrenjoey has raised its rating on diversified industrials and investment company Seven Group Holdings Ltd (ASX: SVW) to overweight. The broker has a 12-month share price target of $40 on the stock.
Seven Group was the No. 1 stock for price growth in the industrials market sector in FY24. Seven shares rose by 52.9% over the 12-month period.
Last week, Seven announced it would pay a fully franked final dividend of 30 cents per share, up 30% on last year. The ex-dividend date is 19 August, and shareholders will be paid on 2 September.
This brings Seven’s total dividends for FY24 to 53 cents per share, equating to a dividend yield of 1.45%.
The Seven share price is $36.35, up 1.42% on Tuesday and down 2.21% in the year to date.