When you're trying to build a strong portfolio, having a few blue chips in there can be a good thing.
That's because blue chips are typically large companies that have been operating for many years. They tend to have stable cash flows, strong business models, and experienced management teams.
Combined, this can make them lower risk options and a good foundation to build a portfolio around.
But which blue chip ASX 200 shares could be in the buy zone right now? Here are three that are rated as buys:
Cochlear Limited (ASX: COH)
The first ASX 200 blue chip share that could be a buy is Cochlear. It is one of the world's leading hearing solutions companies. It has a portfolio of world class products, which have been developed through its significant annual investment in research and development. Thanks to this and its very strong position in a market benefiting from ageing populations, Cochlear has been tipped to continue its solid growth long into the future.
Goldman Sachs is bullish on Cochlear and has a buy rating and $265.00 price target on its shares.
CSL Limited (ASX: CSL)
Another ASX 200 blue chip share that has been rated as a buy is CSL. It is one of the world's leading biotechnology companies, comprising the CSL Behring, CSL Vifor, and Seqirus businesses. It has been tipped for solid growth over the long term thanks to its world class product portfolio, strong demand for immunoglobulins, and its lucrative research and development pipeline.
Citi is a fan of the company and has a buy rating and $350.00 price target on its shares.
South32 Ltd (ASX: S32)
A final ASX 200 blue chip share to consider is South32. It is a mining company producing a diverse range of metals. This includes alumina, aluminium, bauxite, copper, energy and metallurgical coal, manganese, nickel, silver, and zinc. Thanks largely to its exposure to commodities that are vital to the clean energy transition, it has been tipped to generate significant free cash flow in the coming years.
Morgans is bullish on the miner and has an add rating and $5.60 price target on its shares.
