Experts rate these ASX 200 blue chip shares as buys

Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.

Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.

The Australian share market is home to a large number of ASX 200 blue chip shares. But which ones are in the buy zone right now?

Two that have just been tipped as buys are listed below. Here’s what analysts are saying:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The first blue chip ASX 200 share that analysts are positive on is ANZ Bank. It is of course one of Australia’s big four banks.

It has been tipped as a buy by analysts at Macquarie. The broker currently has an overweight rating and $34.00 price target on the bank’s shares. This compares very favourably to the latest ANZ share price of $21.16, which suggests potential upside of 60% for investors.

Macquarie believes that the banks could get a boost to their margins from customers that don’t chase new term deposit rates. It explained:

While competition for ‘hot’ term deposits (TDs) is intensifying, banks’ ‘lazy’ customers (who are not chasing ‘special rates’ offered by banks) contribute to margin upside. We estimate that ‘lazy’ term deposits are currently one of the more profitable bank segments and should provide [approximately] 4-9bps [basis points] tailwind over the next twelve months.

Cochlear Limited (ASX: COH)

Another blue chip ASX 200 share that is rated as a buy is hearing solutions company Cochlear.

The team at Goldman Sachs are bullish and have a buy rating and $237.00 price target on its shares. This compares to the latest Cochlear share price of $188.98, which implies potential upside of 25% for investors.

The broker believes that Cochlear is well-placed to at least meet its guidance in FY 2022. It explained:

Whilst the recovery [from the pandemic] will still be mixed, we believe the steady declines in hospitalisation rates across key markets, supportive backlog volumes and improved margin trajectory support a much improved picture from here. [..] As such, we believe current targets for FY22 offer the best chance in several years for COH to deliver at/above the top-end of its guided range (GSe: A$297m).

The post Experts rate these ASX 200 blue chip shares as buys 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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

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