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:
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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.
