3 ASX 200 blue chip shares to buy with major upside potential

Brokers are tipping big returns from these blue chip shares.

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I thought I would take a look and see if I could find some blue chip ASX 200 shares that brokers not only rate as buys, but also predict big returns from.

Here are three that I found:

CSL Limited (ASX: CSL)

Analysts at Citi continue to believe that this biotherapeutics giant is a buy. The broker recently responded to the ASX 200 blue chip's trading update by retaining its buy rating with a trimmed price target of $340. This suggests a potential upside of over 20% for investors.

Its analysts believe CSL's shares are good value even after reducing their earnings estimates. They said:

We cut our above market FY23-25e NPATA per share (Core EPS) by -4%/-17%/-17% and cut our TP to $340 (from $350). Our TP implies CSL should trade on an FY26 PE of ~27x, in line with the 10-year average. Maintain Buy.

Treasury Wine Estates Ltd (ASX: TWE)

Goldman Sachs believes this wine giant is a blue chip ASX 200 share to buy. Its analysts currently have a buy rating and a $14.20 price target on its shares, which implies a potential upside of approximately 24% for investors over the next 12 months.

Following a recent sell-off, the broker said:

The current sell down represents a good opportunity to further accumulate a stock that has a long-term moat and global scalable upside, at 23x FY24 P/E with 12% FY22-25e CAGR. Reiterate Buy.

Westpac Banking Corp (ASX: WBC)

A final ASX 200 blue chip share that could be destined to generate big returns is Australia's oldest bank. Goldman Sachs is also very positive on the banking giant and has a conviction buy rating and a $24.67 price target on its shares. This implies a potential return of 19% for investors before dividends and approximately 26% including them.

Goldman has named Westpac as its top banking sector pick. It explains why:

[D]espite WBC walking away from its FY24E cost target of A$8.6 bn, we expect a broadly flat cost trajectory over the next two years, which will see WBC outperform peers in this relatively difficult inflationary environment.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL, Treasury Wine Estates, and Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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