Looking for some quality shares to buy? If you are, you may want to look at the two listed below.
Here's why these ASX 200 blue-chip shares are rated highly right now:
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Goodman Group (ASX: GMG)
The first blue-chip share to look at is integrated commercial and industrial property company, Goodman.
Citi is a fan of the company and believes it is well-placed to continue growing its earnings at a solid rate. It explains:
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. The stock currently trades at c. 19x FY24e, below global industrial peers, despite having higher earnings growth and lower leverage. We therefore see upside to the share price and retain Buy.
Citi currently has a buy rating and a $24.30 price target on the company's shares.
Qantas Airways Limited (ASX: QAN)
Another ASX 200 blue chip share that has been named as a buy is airline operator Qantas.
Goldman Sachs is a big fan of the company and has been impressed with its post-pandemic transformation. Pleasingly, it expects its strong profit generation to continue in the near term.
In light of this, the broker believes the market is undervaluing Qantas' shares at present. It explains:
QAN's current market capitalisation and enterprise value are 6% above and 8% below pre-COVID levels. As such, we believe QAN is not priced for a generic recovery, let alone prospects for improved earnings capacity. We continue to see upside associated with substantially improved MT earnings capacity and include QAN in our regional Conviction List.
Goldman has a conviction buy rating and a $8.50 price target on its shares.
