Brokers just upgraded these 3 ASX stocks to buys

It's bullish ratings galore for investors this week.

| More on:
Three people in a corporate office pour over a tablet, ready to invest.

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

As ASX stocks continue their strength in 2025, top brokers have revised their outlook for a handful of companies.

Three of these include Aristocrat Leisure Ltd (ASX: ALL), Flight Centre Travel Group Ltd (ASX: FLT), and Lendlease Group (ASX: LLC), which have each been upgraded to buys this week.

Here's why brokers are bullish on these ASX stocks.

ASX stocks upgraded to buys

First on the list is the gaming machine company Aristocrat. Goldman Sachs has upgraded the ASX stock to a buy.

In a note to clients this week, the broker cited the company's "market dominance", especially in North America, where Aristocrat achieved "record installations" in FY24.

It also said Aristocrat's investment in research and development (R&D) far outpaces competitors and will contribute to "high indexing games ahead of peers".

ALL will be returning to its core competency of slots content following the proposed sale of Plarium. The broader category remains ex-growth, but we expect Pixel's social casino portfolio can deliver +2-3% topline p.a. with land-based synergies driving share gains.

Goldman sees further potential gains for the ASX stock in 2025, given it trades at a discount to other "high growth" stocks and its long-term range.

Although having traded strongly since its FY24 result, we see further upside noting that its PER discount to 'high growth' ASX names is below its 10Y average. Key catalysts: (1) 1H25 result in May; (2) LNW 4Q24 update on 26 Feb; and (3) Weekly digital revenues.

The broker also forecasts dividend yields of 1.7% and 1.5% in FY25 and FY26, respectively, with a return on equity (ROE) of 27% and 28%, respectively.

It rates the ASX stock a buy with a price target of $78 apiece.

Flight Centre and Lendlease catch a bid

As reported by The Australian, brokers also upgraded their ratings on Flight Centre and Lendlease in notes to clients this week.

JP Morgan upgraded Flight Centre to a buy with a price target of $20. This follows a buy rating on the ASX stock from Morgan Stanley earlier this month, as reported by my colleague Bernd.

Meanwhile, the consensus of analyst estimates rates the ASX stock a buy as well, according to CommSec data.

This is made up of ten buys and eight holds. There are no brokers recommending to sell the travel share. Safe to say, the bias is skewed to bullish right now.

Flight Centre last traded at $17.43 apiece.

Analysts at Macquarie have also upgraded the firm's rating on Lendlease to a buy with a price target of $6.98 apiece.

This is slightly ahead of the consensus analyst price target of $6.76 per share, according to Tradingview.

After ending 2024 in the red, the property and infrastructure group is up more than 4% this year to date.

If Macquarie is right, this represents 7% further upside potential from the time of writing.

Foolish takeout

Brokers have rated these ASX stocks as buys this week. If they are correct, investors could be in for some good returns.

Aristocrat shares have risen 61% this past year, whereas Lendlease and Flight Centre are down more than 8% and 18%, respectively.

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, JPMorgan Chase, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Two brokers analysing stocks.
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 businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
Broker Notes

Bell Potter names more of the best ASX 200 stocks to buy in July

These stocks could be best buys this month according to the broker.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Macquarie tips 55% upside for this ASX mining stock

Let's see what the broker is saying about this stock.

Read more »

A concerned man looking at his laptop.
Broker Notes

Why this broker just downgraded Pro Medicus shares

Let's see what Bell Potter is saying about this high-flying stock.

Read more »

Man pointing at a blue rising share price graph.
Resources Shares

Up 275% in a year, why this ASX All Ords mining stock could keep racing higher into 2026

A leading fund manager forecasts more outperformance to come for this rocketing ASX All Ords miner. But why?

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 »

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 »