While there are a good number of quality blue chip options on the Australian share market, two that could be in the buy zone are listed below.

Here’s why analysts at saying these ASX blue chip shares are buys right now:

REA Group Limited (ASX: REA)

The first blue chip to look at is REA Group. It is the dominant player in real estate listings in the Australian market with its realestate.com.au website.

The team at Citi appear to see recent weakness in the REA share price as a buying opportunity. The broker recently put a buy rating and $153.50 price target on its shares.

Its analysts were pleased with what management said at its recent investor day event and appear confident that the company’s growth can continue despite the slowing housing market.

The broker said:

While we do not expect the Investor Day to change sentiment on the stock in the short term given the slowing house market, it did highlight the levers (especially new products and price) in the core listings business to drive growth in the near term, while India and potential direct monetisation of the consumer through Property.com.au presents long-term growth potential.

Woolworths Group Ltd (ASX: WOW)

Another ASX blue chip share that could be in the buy zone is retail giant Woolworths.

It could be a top option for investors according to analysts at Goldman Sachs. This is due to the broker’s belief that the company’s operations are of the highest quality and capable of delivering solid sales and earnings growth even in the current environment.

Goldman has a buy rating and $41.70 price target on the company’s shares. It commented:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

The post Here are 2 blue chip ASX shares analysts rate as buys appeared first on The Motley Fool Australia.

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More reading

• How does the Woolworths dividend compare to Wesfarmers over the last 5 years?
• Here’s why ASX 200 tech shares are taking a beating on Wednesday
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX shares today
• Here’s why I think the REA Group share price is a buy right now

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 Scott Phillips.

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