Three S&P/ASX 200 Index (ASX: XJO) shares just earned substantial upgrades from leading brokers.
The bullish broker outlooks for these stocks follow the release of the companies' earnings results.
The brokers forecast these big-name ASX stocks could see share price gains of as much as 25% over the year ahead. And that's not including the dividends all three companies pay.
Read on for the three stocks with some big potential gains ahead.
(Broker data courtesy of The Australian.)
Why these three ASX 200 shares could surge in 2024
The first ASX 200 share earning a broker upgrade is Domino's Pizza Enterprises Ltd (ASX: DMP).
The fast-food pizza retailer reported its half-year results on Wednesday. The Domino's share price closed up 2.7% on the day and gained another 7.7% yesterday. Shares are up 0.4% in early afternoon trade today at $43.85 apiece.
On the positive side of the ledger, network sales increased 8.8% year on year to $2.14 billion. And Domino's reported same store sales growth of 1.25%. This came alongside an 11.8% boost in online sales, which reached $1.71 billion over the six months.
On the negative side of the ledger for the ASX 200 share, earnings before interest and tax (EBIT) was down 5.3% to $107.9 million. And net profit after tax (NPAT) was down 13% to $62.3 million. Earnings and profits were both impacted by the company's struggling Asian operations.
Still, 2024 is off to a strong start.
In the first seven weeks of the new half, same stores sales growth increased 8.39% in ANZ and 0.34% in Asia. Growth dipped 0.64% in Europe.
Even after the past three days of share price gains, Jarden Securities sees significant further upside ahead.
The broker raised Domino's to an 'overweight' rating with a $49 price target. That's almost 12% above current levels. And that's not including dividends. Domino's declared an unfranked interim dividend of 55.5 cents per share.
