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2 high quality blue chip ASX 200 shares rated as buys

Here’s why REA Group Limited (ASX:REA) and this ASX blue chip share could be great options for investors right now…
The post 2 high quality blue chip ASX 200 shares rated as buys appeared first on The Motley Fool Australia. –

asx investor daydreaming about US shares

If you’re looking for blue chip ASX 200 shares to buy, then you might want to check out the ones listed below.

These quality companies could have the potential to grow strongly over the next decade, which could lead to their shares generating market-beating returns for investors. Here’s why they have been rated as buys:

REA Group Limited (ASX: REA)

The first 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 delivered growth despite dealing with a mini housing market crash and the pandemic.

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. 

Morgan Stanley is particularly positive on the company. It recently put an overweight rating and $175.00 price target on its shares. This compares to the latest REA Group share price of $157.00.

Wesfarmers Ltd (ASX: WES)

Another blue chip ASX 200 share to look at is Wesfarmers. This leading conglomerate owns and operates a diverse group of businesses across several sectors. This includes the likes of Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Target.

But it may not stop there. The company has a penchant for acquisitions, and thanks to its strong financial position, it is quite likely that it will be adding to its portfolio in the near future.

In fact, according to a recent note out of Goldman Sachs, its analysts believe Wesfarmers has over $8 billion in excess of credit requirements, prior to the Mt Holland development. This gives it a lot of firepower when considering its next acquisition(s).

Goldman currently has a buy rating and $59.70 price target on the company’s shares. This compares to the current Wesfarmers share price of $53.78.

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*Returns as of February 15th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 high quality blue chip ASX 200 shares rated as buys appeared first on The Motley Fool Australia.

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