Why Goldman Sachs rates these blue chip ASX 200 shares as buys

There are plenty of blue chip ASX 200 shares to choose from on the Australian share market.

So many, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two that Goldman Sachs rates as buys right now. They are as follows:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Goldman is very positive on the company due to its strong position in an area of the market benefiting greatly from strong demand for industrial space.

In response to its first quarter update earlier this month, the broker commented:

GMG continues to demonstrate its strong platform and positioning as evident in today’s update, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space. We expect solid rental growth as demand for high quality logistics space continues to outpace available supply.

Goldman has a buy rating and $24.20 price target on the company’s shares.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share that Goldman Sachs rates highly is Woolworths. It is the retail conglomerate behind businesses including Woolworths, Countdown, Everyday Rewards, and Big W.

Goldman believes its shares are trading at an attractive level after recent weakness. It recently commented:

Despite a noisy and softer 1Q23, we remain confident that WOW is the superior operator within AU supermarkets with a clear growth pathway to deliver ~3% sales and ~9% NPAT FY22-25e CAGR. WOW is trading at 22.1x FY24E P/E vs our TP implied 27.8x and historical average of 23.2x, providing a value entry point to a quality player in our view. Reiterate Buy (on CL).

Goldman Sachs has a conviction buy rating and $41.70 price target on the company’s shares.

The post Why Goldman Sachs rates these blue chip ASX 200 shares as 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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