Brokers name 2 blue chip ASX 100 shares to buy

A group of men in the office celebrate after winning big.

A group of men in the office celebrate after winning big.

If you’re looking to bolster your portfolio with some new ASX 100 shares, then you may want to consider the two listed below. Both have recently been named as buys by analysts.

Here’s what they have to say about these ASX 100 shares:

ResMed Inc. (ASX: RMD)

ResMed could be an ASX 100 blue chip share to buy. It is a medical device company which has a focus on sleep treatment solutions.

Over the last decade the company’s revenue and earnings have grown at a very strong rate thanks to the quality of its products and its large and growing market opportunity.

The good news is that due to its massive market opportunity in sleep apnoea, chronic obstructive pulmonary disease (COPD), and home healthcare, ResMed looks well-placed to continue its growth in the future.

Goldman Sachs believes this is the case and is forecasting a earnings per share compound annual growth rate (CAGR) of 11% through to FY 2026. It commented:

Whilst supply shortages and cost inflation mitigated the tailwind from these competitor challenges through FY22, we believe the benefits to RMD are significant, and could continue to accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, supporting a favourable earnings trajectory through the long term. We currently model an EPS CAGR of +11% (FY23-26E), with potential upside depending on how competitive/regulatory dynamics develop.

Goldman has a buy rating and $38.00 price target on ResMed’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 100 share that is rated highly is telco giant Telstra.

After years of earnings declines and dividend cuts, Telstra is back on form and growth is now on the agenda. This has been driven by the success of its transformational T22 strategy and will be supported by the growth-focused T25 strategy.

Morgans is very positive on the company due to favourable industry conditions and the potential for value to be unlocked from asset divestments. It said:

Telco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised. The last major mobile operator Vodafone/TPG increased mobile prices by ~$5 per month in January 2023 and all key players are behaving economically rational. This combines with catalysts including the potential for InfraCo value release following the legal restructure.

Morgans currently has an add rating and $4.70 price target on Telstra’s shares.

The post Brokers name 2 blue chip ASX 100 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed and Telstra 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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