Investors who are looking for big returns and high-quality companies might want to check out the three ASX 200 blue chip shares named below.
That's because analysts at Morgans have named them as buys and tipped them to rise 20% to 30% from current levels. Here's what the broker is saying about them:
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Flight Centre Travel Group Ltd (ASX: FLT)
The first ASX 200 blue-chip share for investors to look at is travel agent giant Flight Centre.
Morgans rates the company highly thanks to its transformed business model and margin improvement goals. It explains:
FLT has the greatest risk, reward profile of our travel stocks under coverage. The risk is centred around execution given its changed business model, while the reward is material if FLT delivers on its 2% margin target. If achieved, this would result in material upside to consensus estimates and valuations. FLT is targeting to achieve this margin in FY25. With greater confidence in the travel recovery and the benefits of Flight Centre's transformed business model already emerging, we think the company is well placed over coming years.
Its analysts have an add rating and a $27.27 price target on its shares. This implies a potential upside of almost 30% for investors from current levels.
Nextdc Ltd (ASX: NXT)
Another ASX 200 blue-chip share for investors to look at is data centre operator NextDC.
The broker is bullish on NextDC due to structural demand for data centre services and its ongoing expansion. It believes this leaves the company well-positioned to deliver very strong earnings growth over the coming years. Its analysts explain:
NXT should deliver another good set of results in FY24 with some upside risk to guidance, in our view. Structural demand for cloud and colocation remains incredibly strong. NXT's new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.
Morgans has an add rating and a $20.00 price target on its shares. This suggests that a potential upside of 20% is possible over the next 12 months.
Woodside Energy Group Ltd (ASX: WDS)
A final ASX 200 blue-chip share that Morgans is positive on is energy giant Woodside.
The broker feels that recent share price weakness has created a buying opportunity for investors. Particularly given the quality of its earnings. It said:
A tier 1 upstream oil and gas operator with high-quality earnings that we see as likely to continue pursuing an opportunistic acquisition strategy. WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.
The broker has an add rating and a $36.20 price target on its shares. This implies a potential upside of almost 29% for investors from current levels.
