The ASX 200 earnings season is well underway with brokers progressively rerating various S&P/ASX 200 Index (ASX: XJO) shares based on their FY23 half-year results.

Here we take a look at four ASX 200 shares that have received upgrades from the experts, courtesy of The Australian.

Cochlear Limited (ASX: COH)

Cochlear released a strong set of results for the six months ending 31 December. There was a 9% increase in sales revenue to a record $893 million but its underlying net profit fell 10% due to increased costs.

A strong balance sheet enabled the ASX 200 stalwart to maintain its interim dividend at $1.55 per share.

Cochlear also announced a progressive on-market buyback, starting with a $75 million program.

Cochlear reaffirmed its FY23 guidance. It expects an underlying net profit of between $290 million to $305 million, up 5% to 10% on FY22.

On the back of this news, Morgan Stanley raised its rating on Cochlear to equal weight. The broker has given Cochlear a share price target of $214.

RBC Capital rerated the stock to ‘sector perform’ with a $207 target. Jarden Securities cut Cochlear shares to neutral with a price target of $224.71.

The Cochlear share price is currently $225.02, down 0.63%. It is up 7.7% for the week.

Corporate Travel Management Ltd (ASX: CTD)

The ASX 200 travel share fell upon the release of the company’s half-year results, despite a $15.7 million profit. Corporate Travel also reported $4.2 billion in total transaction value (TTV), up 102% year over year.

The company reported $51.3 million in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), up 182%, and a $15.7 million statutory net profit after tax (NPAT), up from a $10 million loss.

The ASX 200 share will pay an unfranked interim dividend of 6 cents per share.

Looking forward, Corporate Travel is expecting record full-year earnings with forecasted EBITDA of between $160 million and $180 million and an underlying profit before tax of between $120 million to $140 million.

Investment group CLSA raised its rating to reduce with a share price target of $16.50. The Corporate Travel Management share price is already well above this target at $18.18, up 5.37% today and up 10% for the week.

Vicinity Centres (ASX: VCX)

A large real estate investment trust (REIT) within the ASX 200, Vicinity Centres announced a 24.1% bump to funds from operations (FFO) at $357.1 million. This was primarily due to a 20.5% increase in net property income to $459.6 million.

The company said there was “continued strength of retail sales leading to improved cash collections, rental growth, and higher percentage rent”.

The A-REIT has revised its FY23 guidance to FFO per share of between 14 cents to 14.6 cents.

Vicinity Centres declared an interim distribution of 5.75 cents per share, up 22.3% on 1H FY22.

JPMorgan upgraded its rating on the ASX 200 share to neutral with a price target of $2.10. CLSA cut its rating to sell with a target price of $1.88.

The Vicinity Centres share price is currently $2.10, up 0.48%. It is up 6% for the week.

Wesfarmers Ltd (ASX: WES)

Wesfarmers had a ripper result for 1H FY23, reporting a 27% jump in revenue to $22.56 billion and a 14.1% bump to NPAT at $1.38 billion. Basic earnings per share (EPS) came to $1.223 – a 14% rise.

The top 10 ASX 200 share will pay a boosted dividend of 88 cents per share, up 10% on 1H FY22.

Macquarie has raised its rating to neutral with a price target of $56.70, up 23%. This implies a potential 11% upside for Wesfarmers investors, with the share price currently $50.96, down 0.7% today.

Jarden Securities went the other way and cut its rating to neutral with a price target of $46.

The Wesfarmers share price is up 3.7% for the week.

The post 4 ASX 200 shares rerated by brokers following earnings results appeared first on The Motley Fool Australia.

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More reading

• Passive income watch: 3 ASX 200 shares that announced boosted dividends this week
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why did the ASX 200 leap higher on rising unemployment data?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and JPMorgan Chase. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended Cochlear and Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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