2 high quality ASX 200 shares with huge upside potential

These ASX 200 shares could be top options for investors…

| More on:
A group of men in the office celebrate after winning big.

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

The ASX 200 index is home to 200 of the largest listed companies on the Australian share market.

While there are a number of quality options on offer in the index, two that could be in the buy zone with material upside are listed below.

Here's what you need to know about these ASX 200 shares:

BHP Group Ltd (ASX: BHP)

The first ASX 200 blue chip share to look at is BHP. The Big Australian's shares have pulled back materially in recent months following a sharp decline in the iron ore price.

While the weakness in the price of the steel making ingredient is disappointing, it still notably higher than BHP's cost of production. As a result, the company's operations are still generating significant free cash flow. As are many of its non-iron ore operations which are benefiting from rises in other commodity prices.

Macquarie remains very positive on the company. It currently has an outperform rating and $52.00 price target on BHP's shares.

CSL Limited (ASX: CSL)

Another ASX 200 share to look at is CSL. It is one of the world's leading biotherapeutics companies.

CSL has been a very positive performer over the last decade. This has been driven by successful acquisitions, its high level of investment in R&D activities, its growing plasma collection network, and its leading therapies and vaccines.

In respect to the latter, CSL's portfolio includes lucrative and life-saving products such as Privigen, Hizentra, Idelvion, and Afstyla. It will soon add leading iron deficiency, nephrology and cardio-renal therapies to these with the acquisition of Vifor Pharma for $17 billion.

But it doesn't stop there. Thanks to its ~US$1 billion spend on R&D annually, CSL has a pipeline of lucrative products under development to drive its future growth.

Last week Citi upgraded the company's shares to a buy rating with a $340.00 price target.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Blue Chip Shares

Buy these 3 high-quality ASX 200 blue chip shares in December

Analysts think these high-quality shares are buys right now. Let's see what they are saying.

Read more »

Two people comparing and analysing material.
Blue Chip Shares

Are Woodside or CBA shares a better buy?

Here’s how I’d compare these two major ASX blue chips.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
Blue Chip Shares

Why these ASX 200 blue chip shares could generate big returns

Brokers think these shares are could be dirt cheap at current levels.

Read more »

Man sits smiling at a computer showing graphs
Blue Chip Shares

3 ASX shares Australians can buy and hold for the next decade

Analysts think these high quality stocks could be in the buy zone right now.

Read more »

2 women looking at phone
Blue Chip Shares

3 high quality blue chip ASX 200 shares to buy in November

Here are a few blue chip shares that have been rated as buys this month by analysts.

Read more »

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
Blue Chip Shares

2 of the highest-quality blue chip ASX 200 stocks money can buy

Analysts think these blue chips are top buys for investors right now. But why?

Read more »

Three smiling corporate people examine a model of a new building complex.
Blue Chip Shares

This blue chip ASX 200 stock is 'among the highest-quality names' under coverage

Goldman Sachs thinks this blue chip is a top buy.

Read more »

A business woman flexes her muscles overlooking a city scape below.
Blue Chip Shares

Brokers name 2 strong ASX 200 shares to buy now

These shares are among the top picks on the benchmark ASX 200 index according to analysts.

Read more »