Goodman Group (ASX:GMG) and this ASX 200 blue chip share could be in the buy zone right now. Here’s why analysts rate them highly…
The post 2 blue chip ASX 200 shares analysts rate as buys appeared first on The Motley Fool Australia. –
If you’re wanting to construct a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.
But which blue chip ASX 200 shares should you buy? Two that could be in the buy zone are listed below:
Goodman Group (ASX: GMG)
Goodman Group is a leading integrated commercial and industrial property company. It owns, develops, and manages industrial real estate including logistics and industrial facilities, warehouses and business parks.
It has been growing at a strong rate over the last decade and even during the pandemic. This is thanks to its focus on investing in and developing high quality industrial properties in strategic locations.
Management chooses locations that are close to large urban populations and in and around major gateway cities globally. It notes that this is where demand is strong and transformational changes are driving significant opportunities. Pleasingly, this strategy has been delivering consistently strong returns, leading to solid profit and distribution growth.
Citi is a fan of Goodman. It currently has a buy rating and $22.10 price target on its shares.
REA Group Limited (ASX: REA)
Another blue chip ASX 200 share to look at is this property listings company. Trading conditions have not been easy for REA Group over the last few years. However, thanks to the resilience of its business model and dominant market position, it has still managed to deliver solid growth against the odds.
The good news is that the housing market is now booming and demand for listings looks set to increase. Combined with price increases and new revenue streams, this bodes well for its earnings growth in the coming years.
In addition, the company is in the process of acquiring Mortgage Choice Limited (ASX: MOC). Management expects this to strengthen its overall offering and create value for shareholders.
Morgan Stanley is positive on the company. It has an overweight rating and $175.00 price target on its shares.
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