If you want to build a strong portfolio, then owning a few blue chips could be a good starting point.
Blue chips are generally large companies that have been operating for a long period, have stable cash flows, and experienced management teams. This makes blue chips lower risk options and a good foundation to build a portfolio from.
But which blue chip shares should you consider buying? Two that analysts rate highly are listed below:
CSL Limited (ASX: CSL)
The first blue chip ASX 200 share to look at is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring plasma therapies business and the Seqirus vaccine business. The company is also in the process of acquiring Vifor Pharma for $7 billion. Vifor Pharma has a focus on iron deficiency, nephrology, and cardio-renal therapies. It also has a burgeoning research and development (R&D) pipeline that complements CSL’s existing R&D activities and should be supportive of long term growth.
Citi is bullish on the company and has a buy rating and $340.00 price target on its shares. This implies 30% upside from the current CSL share price of $261.55.
It was a fan of the Vifor Pharma acquisition. Citi recently commented: “The key positive from the transaction is that it expands the CSL late stage R&D pipeline, which we have noted for some time was limited for a company the size of CSL.”
Treasury Wine Estates (ASX: TWE)
Another blue chip ASX 200 share to consider is Treasury Wine. It is one of the world’s largest wine companies and the owner of a number of popular brands such as 19 Crimes and Penfolds. While times have been hard over the last couple of years due to being effectively kicked out of China, Treasury Wine is bouncing back thanks largely to growing demand in the US.
Morgans is positive on Treasury Wine’s long term outlook. So much so, it has an add rating and lofty $14.06 price target on its shares. This suggests the Treasury Wine share price could rise 30% from its current level of $10.81.
The broker commented: “The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP is worth materially more than the whole.”
The post Analysts name 2 ASX 200 blue chip shares with 30% upside appeared first on The Motley Fool Australia.
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More reading
- Treasury Wine (ASX:TWE) share price lifts amid latest tariff battle
- Top broker says latest CSL (ASX:CSL) acquisition will boost more than its bottom line. Here’s why
- The Treasury Wine (ASX:TWE) share price has plunged 25% from its 2021 highs. What’s next?
- 3 ‘champion stocks’ for ASX investors in 2022
- 3 blue chip ASX 200 shares to buy after the selloff
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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