PWR Holdings Ltd (ASX: PWH) shares had a day to forget on Wednesday.

The ASX share was down as much as 33% to a 52-week low of $6.10 before ending the session at $6.85.

Investors were rushing to the exits after the automotive cooling solutions company released a bitterly disappointing trading update.

But all that has changed today, with investors returning and are fighting to get hold of its shares now.

So much so, PWR's shares are rocketing 11% to $7.60 at the time of writing.

Why is this ASX share rocketing today?

The catalyst for today's strong rebound appears to have been a broker note out of Bell Potter this morning.

According to the note, the broker has upgraded the ASX share to a buy rating (from hold) with a reduced price target of $8.00 (from $9.75). This implied potential upside of almost 17% for investors from yesterday's close price.

Commenting on the trading update, Bell Potter said:

PWR released a trading update for 1HFY25 which, in short, was well below our expectations: NPAT expected to be b/w $3.2-3.7m (vs BPe $8.7m and pcp of $9.8m); NPAT includes $276k of expenses related to new Stapylton headquarters; Revenue forecast to be $61.9m (vs BPe $69.2m and $64.2m in pcp); and Revenue expected to be lower in OEM and Aftermarket, flat in Motorsports and up strongly in Aerospace & Defence (A&D).

However, the broker believes this is an "abnormal result" and urged investors to take advantage of the selling to pick up shares. It said:

We have rolled forward our relative valuations by a year given FY25 is now distorted by an abnormally low H1 result and FY26 is a better base to use for earnings. We choose to apply multiples of 27.5x and 15x in our PE ratio and EV/EBITDA valuations versus 37.5x and 20x previously (which were applied to FY25 earnings).

There is, however, no net change in the 9.1% WACC we apply in the DCF (reduction in market risk premium offset by increase in beta). The net result is a 17% reduction in our PT to $8.00 which is >15% premium to the share price so we upgrade our recommendation to BUY. As mentioned, we see H1 as an abnormal result and with the likelihood of a much improved H2 and FY26 we see this as a buying opportunity.

With the ASX share up 11% this morning, it seems that many investors are heeding this advice.