The 3 ASX shares that top brokers just upgraded to "buy"

Experts believe the market is set to rise further this year and leading brokers have just put forward three new …

| More on:
Transurban share price ASX shares upgrade to buy asx 200 share price upgrade to buy represented by hand drawing line under the word upgrade

Image source: Getty Images

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

Experts believe the market is set to rise further this year and leading brokers have just put forward three new ASX shares that they just upgraded to "buy" for your watchlist.

The S&P/ASX 200 Index (Index:^AXJO) gained 0.2% this morning and is up nearly 10% since January. Several equity experts believe ASX shares will continue to do well – at least for the rest of this year if not beyond.

Despite the big gains on the ASX, there are still buying opportunities on the market. One example is the IGO Ltd (ASX: IGO) share price even as it raced to a 13-year high.

ASX shares getting a big boost from broker upgrade

The lithium and nickel miner jumped 3.8% to $8.29 during lunch time trade – making it the third best performer on the ASX 200.

Only the Whitehaven Coal Ltd (ASX: WHC) share price and EML Payments Ltd (ASX: EML) share price are besting it with gains of over 5% each.

Investors are getting excited about the IGO share price after Goldman Sachs upgraded it to "buy". The upgrade comes as IGO successfully completes its acquisition of a 49% stake in Tianqi Lithium Energy Australia (TLEA).

What is the IGO share price worth?

"We forecast the acquisition will be EPS accretive from FY23 and cash flow accretive from FY25, driven by a strengthening lithium price and the ramp up of production," said Goldman.

The broker believes IGO is well placed to benefit from the expected boom in battery demand. The miner is positioned in the bottom quartile of the cost curve across nickel, spodumene, and lithium hydroxide.

The broker's 12-month price target on the IGO share price is $9.30 a share.

Playing a better game

Meanwhile, the Tabcorp Holdings Limited (ASX: TAH) also got upgraded by Morgans. The broker lifted its rating on the gaming group to "add" from "hold" following Tabcorp's demerger announcement.

The group intends to split into two ASX-listed entities. One will control Lotteries and Keno (L&K), while the other will hold the wagering and media businesses.

Demerger drives "buy" upgrade for this ASX share

"We are attracted to L&K's infrastructure-like qualities, which have clearly been illustrated through its financial performance during the pandemic," said Morgans.

"We think the demerger has the potential to unlock the value inherent in the high quality L&K business."

The broker's 12-month price target for the combined group increased to $5.66 fron $5.11 a share.

Better placed for the commodity upswing

Another ASX shares that got upgraded by Morgans to "add" from "hold" is the Coronado Global Resources Inc (ASX: CRN) share price.

The broker took a more bullish view of the miner after it successfully refinanced its debt and undertook a capital raising.

The repair to its balance sheet is timely as it coincides with a sharp rise in global coking coal prices.

"Physical market participants – producers, traders, buyers – are increasingly of the view that stronger pricing will persist into end-CY21 on higher steel pricing," added Morgans.

"Very strong Chinese demand is clearly spilling over into pricing into markets ex-China."

The broker's 12-month price target on the Coronado share price is $1.06 a share.

Should you invest $1,000 in Coronado Global Resources Inc. right now?

Before you buy Coronado Global Resources Inc. shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Coronado Global Resources Inc. wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor Brendon Lau owns shares of IGO Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Successful group of people applauding in a business meeting and looking very happy.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Three guys in shirts and ties give the thumbs down.
Broker Notes

3 reasons to sell Guzman y Gomez shares right now

Goldman Sachs thinks now is the time to sell this fast-food stock.

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

These ASX 200 shares could rise 10% to 40%

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Broker Notes

Down 26%! Buy this ASX 200 stock while it's dirt cheap

Bell Potter thinks this blue chip has been oversold and is in the buy zone now.

Read more »

Rising share price chart.
Broker Notes

Morgans says these top ASX stocks could rise 15% to 20%

The broker thinks these shares could be heading higher from here.

Read more »