If you're on the lookout for blue chip ASX shares that you can buy and hold, then I would suggest you check out the ones listed below.
These quality companies could have the potential to grow strongly over the next decade, which could lead to their shares generating market-beating returns for investors during the 2020s. Here's why they have been rated as buys:
REA Group Limited (ASX: REA)
The first ASX blue chip share that could be a great buy and hold option is property listings company REA Group.
The last few years have not been easy for the company. It has had to deal with a mini housing market crash and then of course the pandemic. But despite this, REA Group has managed to come out on top and deliver solid financial results. This appears to demonstrate the resilience of its business model.
The good news is that the housing market is improving and house prices have been tipped to rise strongly once the pandemic passes. This is likely to lead to higher listing volumes and could result in an acceleration in its profit growth in the near future. Especially given its new revenue streams, costing cutting, and potential price increases.
Morgan Stanley is a fan of the company and has an overweight rating and $150.00 price target on its shares.
SEEK Limited (ASX: SEK)
The second blue chip to look at is SEEK. It is the dominant job listings company in the ANZ region and has a number of growing businesses around the world.
This includes the increasingly important Zhaopin business in China. It has been growing at a very strong rate in recent years and is quickly becoming a key part of the SEEK business.
So much so, Zhaopin is expected to play a key role in the company achieving its aspirational revenue target of $5 billion later this decade. This will be a material increase on the revenue of $1,577.4 million it reported in FY 2020.
Analysts at Credit Suisse are positive on the company's future. They have an outperform rating and $28.50 price target on its shares.
