2 high quality ASX 200 blue chip shares with major upside potential

These blue chips could be top options right now…
The post 2 high quality ASX 200 blue chip shares with major upside potential appeared first on The Motley Fool Australia. –

Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then you may want to check out the ones listed below.

These quality companies have been tipped as blue chips to buy. Here’s why analysts are so positive on them:

Rio Tinto Limited (ASX: RIO)

If you’re not averse to investing in the resources sector, then it could be worth considering this mining giant.

The recent collapse in iron ore prices has weighed heavily on the Rio Tinto share price, but it is worth remembering that the company is far from a one-trick pony. Rio Tinto is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Goldman Sachs is very positive on Rio Tinto and has just retained its buy rating and $121.00 price target on the mining giant’s shares. This compares favourably to the latest Rio Tinto share price of $95.07.

The broker is bullish on Rio Tinto due to its attractive valuation, strong free cash flow, production growth potential, and its exposure to low emission aluminium.

In respect to the latter, Goldman commented: “In addition to copper production growth, RIO has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions.”

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 blue chip share to look at is Suncorp. It is one of Australia’s leading banking and insurance companies with a collection of popular brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

Citi is very positive on Suncorp and recently reaffirmed its buy rating and $12.80 price target on the company’s shares. This compares to the current Suncorp share price of $11.09.

While the broker suspects that the company’s near term performance could be subdued, it remains very positive on the longer term and believes now would be a good time to start buying shares.

Citi said: “While we still see SUN as more of a medium term than shorter term story, our analysis suggests the current share price is a reasonable entry point even so. Largely to reflect lower impairment charges, we nudge up our FY22E EPS by 1% and retain our Buy call and A$12.80 TP.”

The post 2 high quality ASX 200 blue chip shares with major upside potential appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Thursday

Here’s why Macquarie sees 39% upside in the Rio Tinto (ASX:RIO) share price

Only a few ASX 200 companies have received this honour and Scentre (ASX:SCG) just joined them

Why this mining analyst is upbeat on the iron ore price forecast

Fortescue’s push to axe diesel subsidies could cost ASX miners billions

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!