If you're building a portfolio of ASX shares, these broker recommendations may be of help in the decision-making.

Analysts have lifted ratings on three stocks in notes to clients this week: EML Payments Ltd (ASX: EML), Webjet Group Ltd (ASX: WJL), and The Lottery Corp Ltd (ASX: TLC).

Why the change of heart on these companies, you might ask? Each has its own strengths and advantages., so let's see what the experts think and what it could mean for your portfolio.

Analysts lift ratings on ASX shares

Anyone following the EML Payments story will know the company has experienced some turbulence in recent years. But its latest trading update has investors foaming at the mouth, with the stock up 27% in the past week alone.

The animal spirits of EML have awakened again, and two points from its quarterly numbers stand out: The 46% jump in pre-tax earnings and management reaffirming full-year guidance of $54 million to $60 million, where it could earn 13 cents per share by FY28.

At the ASX share's closing price of 89 cents on Tuesday, this equals a 14.7% five-year forward earnings yield.

CEO Ron Hynes laid out bold plans to streamline operations and drive "double-digit transaction revenue growth by FY27" alongside the earnings target.

RBC Capital Markets has slapped a buy rating on EML with a $1.20 price target following the announcement, according to The Australian. This suggests a 35% upside potential from Tuesday's closing price.

With management investing in leadership and efficiency gains, there's hope this battered ASX share could claw back some of its former glory.

Webjet takes flight

Webjet Group – which is no longer associated with Web Travel Group Ltd (ASX: WEB) – has been flying under the radar since its listing in September.

Shares are down 9% in the past week, but Jeffries sees some value in the business and has upped its rating to a buy with a $1.10 price target.

Jeffries joins the likes of Goldman Sachs, which already rated the stock a buy at the exact same valuation.

The online travel agency delivered solid half-year results, prompting both brokers to turn more constructive on its outlook.

Goldman was particularly impressed by Webjet's GoSee business, which is showing higher margins, and its improving online travel agency (OTA) run rates.

It says management's guidance for flat earnings growth in FY25 might be a bit "conservative", leaving room for upside surprises. As investors, we like surprises of this kind.

From Webjet Group's closing price of 83.5 cents on Tuesday, the $1.10 price objective implies a tidy 31.7% upside potential. For investors who are bullish on the travel sector, Webjet might just be worth a boarding pass.

Lottery Corp: A jackpot for income investors?

Finally, for those investors seeking ASX shares with more stability and dividends, Jeffries upgraded The Lottery Corp to a buy with a $5.80 price target this week.

According to CommSec, it joins the consensus rating of buy on the stock, with analysts turning more constructive after the company's annual results.

According to Morgans, the Lottery Corp's FY24 results were "impressive", with management highlighting plans to refresh 'Saturday Lotto.'

It says the business can deliver a 4.5% free cash flow yield on its forecasts, and it looks to dividends of 19 cents per share over the coming two years.

ASX shares takeout

Brokers have turned more constructive on these ASX shares after recent updates in their investment stories.

Zooming out, markets continue to trend higher, which means finding selective opportunities like these could be of merit.

In the last 12 months, EML has fallen 19%, whereas The Lottery Corp is up 15%. Webjet Group was carved out of its parent company in September and has climbed 4% since then.