These blue chip ASX 200 stocks could rise 12% to 35%

Brokers have put buy ratings on these top blue chips.

| More on:
Three happy office workers cheer as they read about good financial news on a laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The recent market selloff has been disappointing but the silver lining to this dark cloud is that it has created a buying opportunities for long-term investors.

After all, history shows that quality ASX 200 stocks tend to recover and deliver strong returns over time.

With that in mind, here are three blue chip ASX 200 stocks that analysts have tipped to rise strongly from current levels. They are as follows:

CSL Ltd (ASX: CSL)

CSL is arguably one of the highest-quality companies on the Australian share market. It is a biotechnology giant with a global leadership position in plasma therapies, vaccines, and rare disease treatments.

Its share price has come under pressure recently due to concerns over slower-than-expected margin recovery, but many analysts believe this weakness is temporary.

For example, both Bell Potter and Goldman Sachs are positive on the company and believe it is emerging from a difficult period as strong as ever. In fact, both brokers believe that the blue chip ASX 200 stock is positioned for strong earnings growth over the coming years.

Despite this, the company's shares are trading at a forward price-to-earnings (P/E) ratio of ~23x, which is below its 10-year average of ~31x.

Bell Potter currently has a buy rating and $335.00 price target on its shares. This suggests that upside of 35% is possible from current levels.

Cochlear Ltd (ASX: COH)

Another top ASX 200 stock that has been caught up in the market weakness is Cochlear.

This could be a buying opportunity given that the hearing implant leader is well-positioned to benefit from ageing populations and increasing awareness of hearing loss solutions.

The team at Citi certainly believes that this is the case. The broker recently upgraded Cochlear's shares to a buy rating with a $300.00 price target. This implies potential upside of approximately 12% for investors over the next 12 months.

Qantas Airways Ltd (ASX: QAN)

Finally, Qantas is another ASX 200 stock that has pulled back meaningfully from recent highs.

However, despite the near-term turbulence, Qantas shares are being tipped as a buy by analysts at Goldman Sachs.

The broker highlights that unlike its US peers, which have recently released disappointing updates, Qantas remains the dominant player in the Australian airline industry and continues to benefit from strong demand for both domestic and international travel.

In light of this, its structurally stronger earnings, and its fleet renewal, the broker believes now is a good time to invest.

Earlier this week, it reiterated its buy rating and $11.80 price target on its shares. This suggests that upside of 29% is possible for investors buying at current levels.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in CSL and Cochlear. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, and Goldman Sachs Group. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Blue Chip Shares

A young man punches the air in delight as he reacts to great news on his mobile phone.
Blue Chip Shares

The best blue chip ASX 200 shares to buy this month

Let's see which blue chips are best buys according to analysts at Bell Potter.

Read more »

Blue chips with stock written on them.
Blue Chip Shares

Why these ASX blue-chip shares are top buys for this fund manager

Here are two of the most appealing ASX blue-chip shares.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Blue Chip Shares

3 high-conviction ASX 200 shares I'd buy in June

Let's see why these strong stocks could be top picks for investors this month.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Blue Chip Shares

Morgans says these ASX 200 blue chip shares are buys

Let's see which blue chips the broker is recommending to clients.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Blue Chip Shares

3 super strong ASX 200 blue chip shares to buy now

These blue chips have been given a big thumbs up by brokers.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Blue Chip Shares

Buy these fantastic ASX shares for your SMSF

Looking to bolster your self-managed super fund? Then check out these buy-rated shares.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone.
Blue Chip Shares

2 ASX blue-chip shares that I think are excellent long-term buys

I think these blue-chip shares are impressive players.

Read more »

A group of people in suits watch as a man puts his hand up to take the opportunity.
Blue Chip Shares

These top blue chip ASX 200 shares could rise 25% to 75%

Brokers are tipping these shares to deliver big returns over the next 12 months.

Read more »