Brokers raise ratings on these 2 ASX shares this afternoon

Here are 2 ASX shares that received an upgrade from brokers this afternoon. We take a look at why and what's been driving the prices.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In a whirlwind of a day for the S&P/ASX 200 Index (ASX: XJO), shares are being divided. Financials and traditional value shares are pushing higher, while tech is slaughtered.

However, in the mess of it all, 2 ASX shares have been upgraded by leading brokers.

2 ASX shares getting upgraded

ALS Ltd (ASX: ALQ)

ALS Ltd is an ASX share that has performed solidly over the year, adding nearly 34% over the period. However, the global testing, inspection, and certification company has been caught up in the selloff since mid-February. As a result, the share price is nearly 20% off its February high, trading at $9.54 today.

Investors were buying up the share yesterday, following the announcement of the company acquiring Investiga. The purchase adds Investiga's pharmaceutical testing operations in Brazil and the east coast of the US to ALS.

This afternoon JP Morgan lifted its coverage on the ASX share to a 'neutral' rating. The broker noted the increase in geochemistry sampling activity and the acquisition as positives for the business. Subsequently, the price target was set at $9.80 a share for March 2022.

At the time of writing, ALS is trading down 0.9% to $9.46. The company's market capitalisation is now $4.61 billion.

Infomedia Ltd (ASX: IFM)

The Infomedia share price has been left battered and bruised in the recent ASX tech share thrashing. Prior to the February sell-off, the part cataloging software provider's share price had been hovering around $1.85. At that price, the share had only shaved off 7% since last year. However, the tech armageddon has left Infomedia's share price down 32% at $1.34.

It certainly didn't help when the company reported flat earnings growth in late February. Management put the poor result down to timing delays in negotiations and installations. Additionally, the reluctance to provide future guidance further rattled investors.

However, this hasn't stopped Bell Potter from raising its rating to a 'buy' on Infomedia. The broker is expecting double-digit earnings growth in both 2021 to 2022 and 2022 to 2023 for this ASX-listed share. Bell Potter believes the share is undervalued at $1.35, compared to its price target of $1.75, implying nearly 30% of upside on the current trading price.

At the time of writing, the Infomedia share price is flat at $1.33. The company's market capitalisation is now $499 million. 

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Infomedia. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a wild ride this Thursday.

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Gold

Down 50% in a year, time to pounce on this beaten-down ASX 200 gold stock?

A leading expert offers his verdict on this beaten-down ASX 200 gold miner.

Read more »

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.
Best Shares

Best ASX 200 share of each market sector in FY25

Did you own any of these ASX 200 winners in FY25?

Read more »

children and teacher in childcare education setting
Broker Notes

Why did Macquarie just re-rate G8 Education shares?

G8 Education shares are down 23% this year.

Read more »

IPO written in yellow and stuck in the air.
IPOs

End of the IPO drought: GemLife listing one of the biggest of the year

The GemLife IPO is the third major ASX listing in less than a month.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Share Market News

Why brokers says these ASX dividend stocks are top buys for income investors

Want an income boost? Take a look at these stocks that brokers rate as buys.

Read more »

A man looking at his laptop and thinking.
Broker Notes

After crashing more than 21% yesterday, does Macquarie rate Helia shares a buy?

Should I buy the big dip on Helia shares? Here’s Macquarie’s latest share price forecast.

Read more »

Happy work colleagues give each other a fist pump.
Broker Notes

Buy this ASX 200 share that is having a 'milestone year'

Bell Potter has good things to say about this high-flying stock.

Read more »