Goldman Sachs says these ASX 200 blue chip shares are buys

A group of people in suits watch as a man puts his hand up to take the opportunity.

A group of people in suits watch as a man puts his hand up to take the opportunity.

If you are looking to bolster your portfolio with some ASX 200 blue chip shares, you may want to look at the two listed below that Goldman Sachs rates highly.

Here’s why its analysts think they are in the buy zone now:

Cochlear Limited (ASX: COH)

The first ASX 200 blue chip share that Goldman has named as a buy is this leading hearing solutions companies.

Thanks to its portfolio of world class products in an industry with high barriers of entry, Cochlear has been growing at a strong rate for well over a decade. And with the industry now benefiting from favourable tailwinds such as ageing populations, it appears well-placed to continue this trend long into the future.

Goldman Sachs currently has a buy rating and $247.00 price target on its shares. The broker feels that Cochlear is well-placed to hit the top end of its guidance in FY 2023. It said:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

REA Group Limited (ASX: REA)

Another ASX 200 blue chip share to Goldman rates highly is property listings company REA Group.

It is the company behind the website, which is dominating the ANZ market with an average of well over 100 million monthly visits. This is over three times greater than its nearest competitor.

It is thanks to this dominant market position, together with acquisitions and new revenue streams, that REA Group has been tipped to deliver the goods again in FY 2023 despite the housing market downturn.

Goldman Sachs has a buy rating and $158.00 price target on its shares. It said:

We remain confident that REA can continue deliver > 10% yield growth in FY23, despite the challenging backdrop, supported by ongoing increases in Premiere All attachment, Price rises, and Premiere Plus attachment (contributes GSe +4%/+3% yield driver in FY23/24).

The post Goldman Sachs says these ASX 200 blue chip shares are 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. The Motley Fool Australia has recommended Cochlear and REA Group. 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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