The ASX 200 stocks attracting the biggest broker upgrades: Polynovo, Credit Corp

Polynovo (ASX: PNV) shares rallied 9.8% last Monday after reporting reporting a bumper first-half FY24 result (unaudited), with total global revenue up 65.5% to $48.8 million and underlying EBITDA of $3.6 million.

“While I view profit as a ‘nice to have’, I am more excited by the significant near-term revenue growth possibilities from our expanding geographic footprint and the new ways surgeons have found to use our products," said Chairman David Williams.

To add some perspective, Polynovo's US sales rose 41.7% to $32.2 million while 'Rest of World' sales jumped 122.2% to $10.0 million including sales from relatively new markets like India, Hong Kong and Canada.

Most brokers remain relatively Neutral-rated on the stock but hiked their target prices. Some of the more notable ones include:

• Wilsons upgraded the stock to Market-weight from Underweight and raised its target price to $1.79 from $1.08

• Morgans downgraded the stock to Hold from Add but raised its target price to $1.95 from $1.88

Biggest ASX 200 Upgrades

'Target price' is an aggregate of Refinitiv broker target prices. % Dif compares target prices between 19 and 25 January 2024

Paladin Energy and Boss Energy target prices were upgraded as brokers raised their near-and-long term uranium price forecasts.

"A more imminent Russian nuclear fuel ban and continuous supply problems should keep uranium prices elevated," Citi analysts said in a note last week.

Citi's new base case has uranium averaging US$101/lb in 2024, US$110 in 2025 and long-term assumptions from 2027 of US$115. All price forecasts were raised by US$20-30/lb.

"The main driver of the uranium bull market has been the closure of mines due to low prices last decade, exacerbated by the shift towards non-Russian enrichment capacity that led to overfeeding and raised uranium demand," the analysts said.