2 of the best ASX 200 blue chip shares to buy in May

There are plenty of blue chip shares on the ASX 200 index. But which ones could be buys in May?

Let’s take a look at two shares that are rated as best buys by a couple of leading brokers right now. They are as follows:

Coles Group Ltd (ASX: COL)

Analysts at Morgans think that this supermarket giant would be a great ASX 200 blue chip share to buy this month. So much so, the broker has added it to its best ideas list in May.

It believes that recent share price weakness has created a buying opportunity for investors. The broker said:

In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL. While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

Morgans currently has an add rating and $18.95 price target on the company’s shares. This implies potential upside of 15% for investors over the next 12 months. The broker also expects a ~4% fully franked dividend yield from its shares.

ResMed Inc. (ASX: RMD)

The team at Bell Potter has named this sleep disorder treatment company as an ASX 200 blue chip share to buy. Its analysts have ResMed on their Australian Equities Panel. These are the broker’s favoured Australian equities that offer attractive risk-adjusted returns over the long term.

Bell Potter likes the company due to its significant opportunity as a leader in obstructive sleep apnoea (OSA) and other sleep disorders. It said:

The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. Looking ahead, ResMed continues to expect device sales to be sequentially higher throughout CY2023. Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

The broker has a buy rating and $36.00 price target on its shares. This suggests potential upside of 9% is possible over the next 12 months.

The post 2 of the best ASX 200 blue chip shares to buy in May appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in ResMed. 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 Coles Group and ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.