3 ASX 300 shares receiving broker upgrades today (one with 25% potential upside)

ASX 300 shares are slightly lower on Tuesday afternoon, down 0.17% as earnings season continues.

As reported in The Australian, various stocks are receiving broker upgrades after the companies released their 1H FY24 earnings results yesterday.

Let’s take a look at this trio in the ASX 300.

ASX 300 shares upgraded following half-year reports

Adairs shares upgraded as dividends resume

The Adairs Ltd (ASX: ADH) share price is $2.15, up 1.9% amid news of two broker upgrades today.

Morgans has raised its rating on the ASX 300 retail stock to add, with a 12-month share price target of $2.40. Wilsons has bumped up its rating to market-weight with a $2 price target.

Yesterday Adairs reported an 18.9% decline in statutory net profit after tax (NPAT) to $17.7 million for 1H FY24. Perhaps investors were expecting worse given the 13.35% rise in the Adairs share price yesterday.

Adairs also announced the resumption of dividends after not paying a final dividend in FY22. The ASX 300 retailer will pay a fully franked interim dividend of 5 cents per share (cps), down from 8 cps in 1H FY23.

Mayne Pharma share price up 22% in two days

The Mayne Pharma Group Ltd (ASX: MYX) share price is $6.57, up 8.87% at the time of writing.

Wilsons has raised its rating on the ASX 300 stock to overweight. However, its new 12-month share price target is well below today’s value at $7.38.

Yesterday, Mayne Pharma reported a 43% increase in revenue to $188 million and underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $8 million. The 1H FY24 EBITDA contrasts starkly with last year’s 1H FY23 EBITDA loss of $25.7 million.

Investors were pleased and pumped up Mayne Pharma shares by 13.74% during the session on Monday.

Wilsons tips 25% potential upside on ASX 300 healthcare share

The Nanosonics Ltd (ASX: NAN) share price is 4.94% higher on Tuesday at $2.76.

JP Morgan has upgraded the ASX 300 healthcare stock to neutral with a $2.80 share price target. Wilsons has also upgraded Nanosonics shares to overweight with a more ambitious $3.45 price target.

Yesterday, the infection prevention company reported a 2% decline in revenue to $79,638 million and a 41% decline in NPAT to $6,168 million in 1H FY24. As my colleague James reported, softer sales and significantly higher expenses put a drag on the company’s earnings.

ASX 300 investors punished the stock yesterday to the tune of a 13.92% fall in the share price. Perhaps they overdid it, if today’s near-5% bump is anything to go by.

The post 3 ASX 300 shares receiving broker upgrades today (one with 25% potential upside) appeared first on The Motley Fool Australia.

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More reading

• Nanosonics share price crashes 14% on first-half profit crunch
• Why Alumina, Kogan, Mayne Pharma, and Suncorp shares are racing higher
• Why Nanosonics, NIB, Santos, and TPG shares are falling today
• Adairs share price rockets 12% as dividend payments resume
• 2 ASX stocks that could explode in February

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen 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 Adairs, JPMorgan Chase, and Nanosonics. The Motley Fool Australia has positions in and has recommended Adairs and Nanosonics. 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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