If you want to add some ASX 200 blue chips to your portfolio in order to strengthen it, then the two listed below could be top options.
That's because these blue chips have very strong business models, bright long-term outlooks, and the potential for strong returns
Here's what you need to know about them:
CSL Limited (ASX: CSL)
The first ASX 200 blue chip share that could be a buy is CSL. It is the biotherapeutics giant behind the CSL Behring, CSL Vifor, and Seqirus businesses. These are leaders in their respective fields of plasma therapies, iron-based treatments, and vaccines.
Morgans is a fan of the company and believe it would make a key portfolio holding. The broker said:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.
Morgans currently has an add rating and a $323 price target on its shares. Based on the current CSL share price of $267.10, this suggests a potential upside of 21% for investors.
Goodman Group (ASX: GMG)
Another blue chip ASX 200 share that could be a buy is Goodman Group.
It is a leading integrated commercial and industrial property company with a world-class portfolio of assets that has underpinned solid earnings growth over the last decade.
The good news is that analysts at Citi believe this strong form can continue. They said:
We see potential for GMG to generate consistent high-single to low-double digit earnings growth over the medium term driven by rental upside and longer term development projects, which will add to management and development earnings.
Citi has a buy rating and a $24.30 price target on its shares. Based on the current Goodman share price of $20.51, this implies a potential upside of almost 19% for investors. This rises to approximately 20% including dividends.
