2 highly rated blue chip ASX 200 shares

There are many blue chip options for investors on the ASX. Are these among the best?

| More on:
asx blue chip shares represented by pile of blue casino chips in front of bar graph

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

Given the large number of blue chip shares out there for investors to choose from, it can be hard to decide which ones to buy.

In order to narrow things down for you, I have picked out two blue chip shares which come highly rated right now. They are as follows:

CSL Limited (ASX: CSL)

The first blue chip share to look at is CSL. It is one of the world's leading biotechnology companies with a portfolio of leading therapies and vaccines. This includes flu vaccines, immunoglobulins, and countless other plasma-based products.

However, the company isn't settling for that and continues to invest heavily in its research and development (R&D). In fact, each year, the company invests somewhere in the region of 11% of its sales back into R&D activities. This means that approximately US$1 billion will be spent this year to ensure that the company's R&D pipeline is filled to the brim with innovative and potentially lucrative products.

One leading broker that is positive on the company is Citi. Its analysts currently have a buy rating and $310.00 price target on its shares.

Sonic Healthcare Limited (ASX: SHL)

Another blue chip ASX 200 share to consider is Sonic Healthcare. It is a leading medical diagnostics company which has been growing at a very strong rate in FY 2021.

For example, during the first half, the company delivered a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million. A key driver of this growth was strong demand for COVID-19 testing services, which was supported by positive performances from the rest of the business.

And with COVID-19 testing expected to remain strong for a little while to come, Sonic looks set to continue its growth in FY 2022. In addition to this, due to its strong balance sheet, the company has the optionality to boost its growth through earnings accretive acquisitions.

One broker that is particularly positive on the company is Credit Suisse. It has an outperform rating and $40.00 price target on the company's shares.

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Blue Chip Shares

Person holding a blue chip.
Opinions

Buy alert! 2 ASX 200 blue-chip shares worth a look now: expert

Dylan Evans from Catapult Wealth has identified two blue-chip shares that he thinks are good buys today.

Read more »

A group of young friends celebrating and toasting with beers
Blue Chip Shares

This beaten-down ASX 200 stock could be a turnaround story

Let's see if analysts think this stock is a buy after its heavy decline.

Read more »

A young woman sits on a sofa in a stylish home with her laptop computer balanced on her knee and smiles with a satisfied look on her face at what she's seeing on the screen.
Blue Chip Shares

2 ASX blue-chip shares offering big dividend yields

These stocks could provide strong passive income.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Blue Chip Shares

3 ASX 200 blue chip shares to buy with $3,000 in July

Analysts have recently named these well-known stocks as top buys.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Blue Chip Shares

3 fantastic ASX shares to buy for an SMSF

Let's see why these shares that brokers rate as buys could be top picks for super investors.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Blue Chip Shares

Buy these fantastic ASX 200 blue chips with $10,000

Analysts think these top stocks are buys right now.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Blue Chip Shares

The best ASX shares to buy and forget for 10+ years

Want to make long term investments? Here are three picks that brokers rate as buys.

Read more »

An ASX investor in a business shirt and tie looks at his computer screen and scratches his head with one hand wondering if he should buy ASX shares yet
Blue Chip Shares

This popular ASX 200 blue-chip share has literally gone nowhere in 17 years

Even blue-chip shares can fall short.

Read more »