If you’re wanting to boost your portfolio with some blue chip ASX 200 shares then you may want to consider the two listed below.
Both are high quality companies and have been rated as buys recently. Here’s what you need to know about them:
Goodman Group (ASX: GMG)
The first blue chip ASX 200 share to look at is this leading integrated commercial and industrial property company.
Goodman has been growing at a solid rate over the last decade thanks to its successful strategy of focusing on investing in and developing high quality industrial properties in strategic locations. These are close to large urban populations and in and around major gateway cities globally.
Pleasingly, this strong form has continued in FY 2022, with Goodman recently handing in another impressive report card.
The team at Citi is positive on Goodman and has named the company as its top pick in the sector. Citi has a buy rating and $29.50 price target on its shares.
Its analysts commented: “GMG’s 1H22 EPS of 41.9c was 12% ahead of Visible Alpha consensus (37.3c) and 6% ahead of Citi (39.5c). FY22 EPS guidance was upgraded for the 2nd time in 6 months to 20% growth, or EPS of 78.7c, +1.5% ahead of ingoing consensus of 77.5c. FY22 DPS guidance was retained at 30c. We continue to see guidance as conservative, with our EPS estimates rising 5% in FY22 and c. 6% thereafter. We now forecast c. 23% EPS growth in FY22 and c. 19% EPS CAGR from FY21-FY24. Our TP increases 5% on higher asset values and higher earnings. GMG remains our top pick in the sector.”
REA Group Limited (ASX: REA)
Another blue chip ASX 200 share to consider buying is this digital advertising company.
REA is the operator of Australia’s leading property website, realestate.com.au, and a range of complementary businesses both at home and internationally.
It was also a strong performer during the first half, delivering a 37% increase in revenue to $590 million and a 27% lift in EBITDA to $368 million. The latter was ahead of the market consensus estimate of $350 million.
This result went down well with the team at Goldman Sachs, which has put a buy rating and $167.00 price target on the company’s shares.
Goldman said: “REA also delivered strong 1H22 earnings growth which was broadly in-line with our expectations, but was weaker in the core Australia business. With a strong start to 2H (i.e. listings +14% in Jan), and continued pricing/depth residential tailwinds, we expect solid 2H momentum.”
The post Analysts name 2 ASX 200 blue chip shares to buy appeared first on The Motley Fool Australia.
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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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