If you're planning to add a few blue chip ASX shares to your portfolio in the near future, then I would suggest you consider the two listed below.
As far as two brokers are concerned, they could be among the best on offer on the Australian share market right now. Here's why they are rated as buys:
CSL Limited (ASX: CSL)
CSL is one of the world's leading biotherapeutics companies and the name behind the high quality CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business.
Both of CSL's businesses have been growing at a solid rate in recent years and have been tipped to continue doing so in the future. This is due to their leading therapies and vaccines, increasing demand, and lucrative research and development pipelines.
In respect to the latter, CSL's pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. This includes clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.
UBS recently retained its buy rating and $346.00 price target on CSL's shares. This compares to the latest CSL share price of $284.72.
Xero Limited (ASX: XRO)
Another blue chip to look at is Xero. It is one of the world's leading cloud-based business and accounting software platform providers. Over the last few years the company has successfully evolved from being a place to do your accounts, to a full-service small business solution.
This has helped underpin significant subscriber and revenue growth. For instance, during the first half of FY 2021, Xero finished the period with 2.45 million subscribers. This led to it reporting a 21% increase in operating revenue to NZ$409.8 million and a 15% lift in annualised monthly recurring revenue (AMRR) to NZ$877.6 million.
One broker that is confident there will be more of the same over the 2020s is Goldman Sachs. Last month it initiated coverage on the company with a buy rating and $157.00 price target. Goldman believes Xero can achieve a 2030 subscriber footprint of 7.4 million and generate NZ$3.4 billion in annual revenue.
