Why analysts love Woodside and these ASX blue chip shares

Having some ASX blue chip shares in your portfolio is always a good idea.

That’s because blue chips tend to have strong business models and talented and experienced management teams. This can make them lower risk options.

Overall, this can make them a great option if you want a firm foundation to build out your portfolio from.

But which ASX blue chips could be buys? Let’s take a look at three that analysts are tipping as buys:

Coles Group Ltd (ASX: COL)

Analysts at Bell Potter think that supermarket giant Coles could be a top option for investors right now. This is due partly to the hard work it is doing on the modernisation of its supply chain. It said:

In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

Bell Potter has a buy rating and $19.00 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Over at Goldman Sachs, its analysts think Telstra could be an ASX blue chip share to buy right now. It is of course Australia’s leading telecom operator.

The broker likes the company due to its low risk earnings growth and opportunities to unlock value through the monetisation of assets. It explains:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation-linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss of strategic benefit.

Goldman has a buy rating and $4.25 price target on Telstra’s shares.

Woodside Energy Group Ltd (ASX: WDS)

Finally, Morgans thinks that Woodside could be an ASX blue chip share to buy this month. It believes that recent weakness has created an opportunity for investors to buy the energy giant. It said:

WDS’s share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.

Morgans has an add rating and $36.00 price target on its shares.

The post Why analysts love Woodside and these ASX blue chip shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.