2 ASX 200 blue chip shares that might be the best to buy

These 2 S&P/ASX 200 Index (ASX:XJO) blue chip shares could be two of the best picks to be looking at right now.

| More on:
ASX shares upgrade buy Woman in glasses writing on buy on board

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

There are some high-quality S&P/ASX 200 Index (ASX: XJO) blue chip shares that could be best ideas to be thinking about at the moment.

A few ASX 200 shares are well-liked by several brokers which indicates that they might be interesting to look at:

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel describes itself as a global leader in business travel management services. Its aim is to find savings, efficiency and safety for businesses and their travellers all around the world.

It's currently rated as a buy by six brokers. Morgans is one of the brokers that likes Corporate Travel Management shares and it's the broker's pick of the sector.

In a recent trading update, Corporate Travel Management said that it's returning to profit. It broke-even in March and expects positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter of FY21.

The ASX 200 share is seeing strong domestic demand in the Australia and New Zealand region with total client activity climbing to 85% of FY19 booking levels as of mid-April.

New Zealand continues to be a standout and, as of mid-April, was trading at above 160% of FY19 booking levels.

The US is experiencing positive signs of activity recovery. Despite lockdowns in the UK and Europe, significant essential travel client wins in this region continue to contribute profitability to the group.

Management believe the company is best leveraged to a domestic recovery. Around 70% of pre-forma FY19 revenue is generated from the US and the UK. These regions have the most advanced vaccination rollouts. Corporate Travel Management said that the speed of the rollouts supports expectations of a rapid return to corporate domestic travel and meaningful levels of pan-European and trans-Atlantic travel after the northern hemisphere vacation period.

Idp Education Ltd (ASX: IEL)

Idp Education says that it's a global leader in international education services. It helps international students study in English speaking countries.

The company says that its success is from connecting students with the right course in the right institution and the right country.

IDP is also a co-owner of IELTS, the world's most popular high-stakes English language test. It also operates 11 English language teaching campuses across South East Asia.

It's currently rated as a buy by at least five brokers. Morgans is one of the brokers that believes the ASX 200 share is a buy, with a price target of $28.48 over the next 12 months. Whilst the broker is positive about the business, the COVID-19 surge in India is a headwind with 40% of IELTS' testing revenue being derived from there.

The ASX 200 blue chip share's management say that it has a resilient business model. Its diverse business model and strategy is holding the organisation in good stead through crisis.

The recovery is ongoing. Demand remains, with growing IELTS capacity through new computer-delivered centres. It's also increasing counsellor capacity to support students into FY22 and FY23.

IDP Education is investing in its digital technology and capabilities. It has also accelerated its innovation strategy. According to Morgans, the IDP Education share price is priced at 56x FY22's estimated earnings.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

A young man wearing a black and white striped t-shirt looks surprised.
Broker Notes

These ASX 200 shares could rise 25% to 80%

Analysts think big returns could be on offer from these shares.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A group of three miners in hard hats and high visibility vests confer at a rocky mining site.
Broker Notes

Up 66% in a year, just how much more upside does Macquarie tip for Perseus Mining shares?

Just how much higher might Perseus Mining shares soar? Here’s what Macquarie had to say about the ASX 200 gold…

Read more »

Rising share price chart.
Broker Notes

Why this exciting ASX 200 share could rise almost 50%

Bell Potter has good things to say about this biopharmaceutical company.

Read more »

Buy and sell written on silver cubes on a stock market chart.
Broker Notes

2 buys and 2 sells in the ASX 200 financials sector: analysts

We reveal what the experts think of these ASX 200 financial shares.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Broker Notes

These ASX 200 shares could rise 33% to 37%

Analysts at Morgans think these shares could deliver big returns.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »