Analysts say these beaten down blue chip ASX 200 shares can rise 50%

If you’re wanting to strengthen your portfolio with some ASX 200 blue chip shares, you may want to look at the two listed below.

Both of these high quality blue chip shares have been beaten down this year, which could have created a buying opportunity for long term-focused investors.

Here’s why analysts think they could be blue chip shares to buy right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. This leading integrated commercial and industrial property company’s shares have fallen over 40% since the start of the year.

This is despite the company’s strong performance continuing in FY 2022 and its guidance for further solid growth this financial year.

And with demand for its property, which includes warehouses, data centres, large scale logistics facilities, and business and office parks, expected to remain robust, Goldman Sachs is recommending investors take advantage of the weakness to buy its shares. It recently commented:

We expect solid rental growth as demand for high quality logistics space continues to outpace available supply. Although the macro environment remains challenged, we believe there is upside risk to its conservative guidance as the Group has historically “Guided light”, coming in ahead of initial estimates. Given GMG’s preference to own, develop and manage high-quality industrial assets in key infill markets globally, we believe it is well-positioned to capture market rental growth, which when coupled with elevated investment demand for industrial assets will assist in contributing to AUM growth over time.

Goldman currently has a buy rating and $25.40 price target on the company’s shares. Based on the latest Goodman share price of $15.92., this suggests potential upside of almost 60%.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share that has been beaten down is job listings giant Seek. Since the start of the year, its shares have also tumbled 40%.

This has caught the eye of analysts at Morgans, which believe the company is one of the best options for investors on the ASX 200 index right now.

Its analysts commented:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~250k currently, +35% on pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK’s products.

Morgans has an add rating and $29.40 price target on its shares. Based on the current Seek share price, this implies potential upside of almost 50% for investors over the next 12 months.

The post Analysts say these beaten down blue chip ASX 200 shares can rise 50% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Goodman share price hits two-year low: Time to buy?
• Why Dubber, Johns Lyng, Seek, and St Barbara shares are sinking today
• 5 things to watch on the ASX 200 on Monday
• 2 high quality blue chip ASX 200 shares that experts rate as buys

Motley Fool contributor James Mickleboro has positions in SEEK Limited. 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 SEEK 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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