The All Ordinaries Index (ASX: XAO) is up 18% over 12 months and could get some ongoing support in 2025 from three ASX All Ords stocks tipped to outperform by top brokers.
One provides rental equipment for the mining industry.
The second provides automotive cooling solutions.
And the third company receiving a broker upgrade today is a major Aussie energy producer.
Which upgraded ASX All Ords stocks are we talking about here?
I'm glad you asked!
(Broker data courtesy of The Australian.)
Image source: Getty Images
Three ASX All Ords stocks forecast to charge higher
Starting with the big Aussie energy company, we have Santos Ltd (ASX: STO).
Santos shares are up 0.4% in early trade today, swapping hands for $6.82 apiece. This sees the ASX All Ords stock down 3% in 12 months. Santos shares also trade on an unfranked trailing dividend yield of 6.7%.
Morgan Financial forecasts better days ahead for the energy producer. The broker raised Santos shares to an add rating with a $7.40 price target. That represents a potential upside of almost 9% from current levels.
Santos held its investor day on Tuesday, 19 November.
The ASX All Ords stock maintained its 2024 cost and production guidance. And boosting investor sentiment, CEO Kevin Gallagher announced an updated capital allocation framework. The energy company will now target returns to shareholders of at least 60% of all-in free cash flow from 2026, when the major capex expenditure for its growth projects winds down.
Which brings us to the second ASX All Ords stock earning a broker upgrade today, mining machine rental company Emeco Holdings Ltd (ASX: EHL).
The Emeco share price is up 1.2% today at 82 cents. Emeco shares have enjoyed a strong year, up 42% in 12 months.
Jarden Securities expects more strong performance from the company. The broker raised Emeco to an overweight rating with a $1.00 price target, which is 22% above the current share price.
Emeco provided an FY 2025 trading update and earnings guidance yesterday, 20 November.
Investors were quick to clue into the increased earnings forecast. Management forecasts FY 2025 operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of "at least" $300 million, some 7% above FY 2024 earnings.
Automotive cooling solutions provider PWR Holdings Ltd (ASX: PWH) rounds off the list of ASX All Ords stocks getting a sizeable broker upgrade today.
The PWR share price is up 5.1% in early trade today at $7.20. PWR shares are down 27% over the past year, with much of that pain hitting in yesterday's trade. The stock also trades on a fully franked trailing dividend yield of 1.9%.
Citi believes the recent selling action has been overdone. The broker raised PWR to a buy rating with a $9.45 price target. That represents a potential upside of 31% from the current price.
PWR shares closed down 24.6% yesterday after releasing an underwhelming trading update.
Investors hit the exits, perhaps too hastily, according to Citi, after the ASX All Ords stock said it expects net profit after tax (NPAT) for H1 FY 2025 to be in the range of $3.2 million to $3.7 million. That's well down from the NPAT of $9.8 million reported in H1 FY 2024.
