Do you have room for some high quality companies in your investment portfolio?
The three ASX 200 blue chip shares listed below could be worth considering if you do. Here's why analysts are bullish and are tipping them as buys right now:
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CSL Ltd (ASX: CSL)
Bell Potter has a buy rating and $327.42 price target on this ASX 200 blue chip share.
It thinks the underperformance of the biotherapeutics giant's shares in recent years has created a buying opportunity for investors. Particularly given CSL's very strong outlook and the discount its shares trade at to historical averages. It said:
CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x and a substantial discount to its 5 year average of ~35x.
Origin Energy Ltd (ASX: ORG)
Goldman Sachs has a buy rating and $11.25 price target on this energy giant's shares.
It likes Origin Energy due to the diversification of its earnings, attractive yields, and investment in Octopus. It explains:
APLNG earnings diversification to support strong FCF & returns. We expect electricity markets will remain volatile where ~50% of FY25E EBITDA from APLNG should reduce risk, while supporting a strong 9% FCF yield and 6% dividend yield. […] Octopus' valuation has already increased 600% since ORG's initial investment in 2020, which we expect could continue to grow over 20% in FY25 as contracted Kraken accounts growth drives 30% EBITDA growth.
ResMed Inc. (ASX: RMD)
Morgans has an add rating and $35.93 price target on this sleep apnoea focused medical device company's shares.
It likes the ASX 200 blue chip share due to its significant growth opportunity and unique position in the market. The broker also doesn't believe that weight loss drugs are going to have as much of an impact as many fear. It said:
While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.
