When you building an investment portfolio, it can be a good idea to have a few ASX 200 blue chip shares in there.
That's because blue chips usually have strong business models, long track records of growth, and highly skilled management teams. These are the type of qualities you want from long-term investments.
But which ASX 200 blue chip shares could be buys this month? Here are three that analysts rate as buys:
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Challenger Ltd (ASX: CGF)
The team at Morgans thinks that this annuities company could be a blue chip share to buy.
It was pleased with its performance in FY 2024 and is feeling positive about its outlook. In light of this, it feels that its shares have an undemanding valuation at present. It said:
CGF's FY24 normalised NPAT (A$417m) was in-line with consensus and +14% on the pcp. Overall, we saw this as a positive FY24 result highlighted by a strong improvement in Life business margins/returns, good group cost control and an upward step change in CGF's capital position. We lift our CGF FY25F/FY26F EPS by 4%-6% on higher Life business margin expectations, and a reduction in our cost-to-income ratio forecasts. With CGF having good earnings momentum, and trading on an undemanding 12x FY25F PE multiple, we see further upside.
Morgans has an add rating and $8.66 price target on its shares.
Flight Centre Travel Group Ltd (ASX: FLT)
Another ASX 200 blue chip share that Morgans rates as a buy is Flight Centre. It is one of the world's largest travel agents with operations across the globe.
The broker was pleased its performance in FY 2024 and believes more of the same is coming thanks to margin improvements. The broker said:
FLT's FY24 result was in line with its recent update. The highlights were the increase in its revenue margin to 11.4% vs 10.4% in FY23, the 2H24 NPBT margin of 1.7% and strong operating cashflow up 170% on the pcp. FLT said that its outlook is positive however in line with usual practice, FY25 guidance won't be provided until the AGM in November. We maintain our ADD rating.
Its analysts have an add rating and $25.35 price target on the company's shares.
Treasury Wine Estates Ltd (ASX: TWE)
The team at Goldman Sachs thinks that this wine giant could be an ASX 200 blue chip share to buy this month.
Its analysts believe the Penfolds owner is well-placed to deliver consistently strong earnings growth in the coming years. It said:
Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027; and 2) its rank as the #1 luxury wine company in the US (most sales in luxury wine) with the recent acquisitions of Frank Family Vineyards (FFV) and DAOU which have been growth and margin accretive, combined with a stable portfolio of Premium Brands. TWE is trading modestly below the 5-year historical P/E average.
Goldman has a buy rating and $15.20 price target on its shares.
