Are you wanting to buy some blue chip ASX shares for your portfolio? Then you might want to check out the ones listed below.
These quality companies have been tipped as blue chips to buy. Here's what you need to know:
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ResMed Inc. (ASX: RMD)
The first blue chip for investors to consider is ResMed. It is a medical device company with a focus on sleep disorders.
ResMed has continued to grow at a decent rate over the last 12 months despite the pandemic's negative impact on sleep disorder diagnoses and referrals. The good news is that with vaccines rolling out, referrals are expected to pick up again in FY 2022. And with one of its largest rivals recently having to recall an extremely popular sleep apnoea device, the company has been tipped to win further market share and continue its growth.
Looking further ahead, the company still has a very long runway for growth over the next decade. In fact, management has set itself a goal of improving 250 million lives in out-of-hospital healthcare in 2025. Helping it achieve this goal will be its high quality product portfolio, rapidly growing digital health ecosystem, and the growing awareness of sleep disorders and their impact on a person's overall health.
Earlier today, Macquarie upgraded the company's shares to an outperform rating with a $34.85 price target.
Sonic Healthcare Limited (ASX: SHL)
A second blue chip share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.
Unlike ResMed, Sonic has had the wind in its sails over the last 12 months. This led to the company reporting a 33% increase in half year revenue to $4.4 billion and a 166% jump in first half net profit to $678 million in February.
This was driven largely by strong demand for COVID-19 testing services. However, it is worth acknowledging that the rest of the business has been performing positively as well since trading conditions returned to relatively normal.
One broker that is a fan of the company is Credit Suisse. It currently has an outperform rating and $40.00 price target on Sonic's shares.
The broker is seeing signs of pent up demand for healthcare services after people delayed seeking healthcare during the pandemic. It expects Sonic to benefit from this, along with further COVID-19 testing in the near term.
