Insights

2 strong blue chip ASX shares rated as buys by brokers

These 2 blue chip ASX shares are rated as buys by brokers. One of those ideas is biotech healthcare giant CSL Limited (ASX:CSL).
The post 2 strong blue chip ASX shares rated as buys by brokers appeared first on The Motley Fool Australia. –

best fintech asx shares represented by businessman flexing biceps

Blue chip ASX shares can make good investments and some brokers have been scouring the market for the best ones to own.

The idea is that the broker will try to find the opportunities that might do well over the next 12 months – so then a price target is assigned. The bigger the price target, the stronger the return might be over the next year.

These two blue chip ASX shares are ones that leading brokers like:

CSL Limited (ASX: CSL)

CSL is actually one of the biggest blue chip shares on the ASX. It has a market capitalisation well over $100 billion.

One of the brokers that likes the CSL share price right now is UBS. Whilst the interim report was strong, the broker doesn’t think the following six months will be as good.

A key reason for the weaker expectation is that plasma collections are suffering and may not turn around until near the end of FY21.

One of the things that may help CSL is when COVID-19 vaccines have been deployed. However there is a while to go with this.

The blue chip ASX share is reporting some strength in its Seqirus business which CSL said delivered an exceptionally strong performance in the first six months of the financial year.

CSL did say that its performance is being supported by its diversified and resilient business model.

In the first half of FY21 it made $1.81 billion of net profit after tax (NPAT). Full year profit for FY21 is expected to be between $2.17 billion to $2.265 billion, which would be growth of up to 8% in constant currency terms, despite all of the impacts.

UBS has a price target of $310 for CSL shares, which would be growth of almost 30%.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is now one of the world’s biggest iron ore miners and it’s still rated as a buy by the brokers at Macquarie Group Ltd (ASX: MQG).

The blue chip ASX share is benefiting from the high iron ore prices and this is sending the net profit surging higher.

In the FY21 half-year result, revenue jumped 44% to $9.3 billion, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 57% to $6.6 billion and net profit after tax grew 66% to $4.08 billion. This funded a 93% increase of the dividend to AU$1.47 per share.

Fortescue has announced it plans to shift its business to greener initiatives sooner than expected with a goal of being carbon neutral by 2030.

Some of the plans include green hydrogen, renewable energy and green ammonia. It’s looking for these types of projects across Australia and the world. Fortescue is looking to reduce its own footprint with getting rid of diesel consumption.

Macquarie doesn’t think that FY22 will be as strong as FY21. So, for FY22, Macquarie is predicting that Fortescue can generate $2.42 of earnings per share (EPS) and that it’s going to pay a dividend of $1.94 per share. That would translate into a forward grossed-up dividend yield of 13.6%. Macquarie has a price target of $25.50 for Macquarie. 

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Tristan Harrison owns shares of Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie 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 strong blue chip ASX shares rated as buys by brokers appeared first on The Motley Fool Australia.

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!