2 ASX blue chip shares tipped as buys

Cochlear Limited (ASX:COH) and this ASX blue chip share could be the ones to buy right now. Here’s what you need to know…

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Are you looking to bolster your portfolio with the addition of a few quality blue chip shares?

Then you’re in luck, here are two top blue chips that have recently been tipped as buys.

Cochlear Limited (ASX: COH)

Cochlear is a global leader in the design, manufacture, and selling of implantable hearing devices. It has been a consistently strong performer over the last decade thanks to the increasing demand for its products due to the ageing populations tailwind and its world-class product range.

The latter has been underpinned by its high level of investment in research and development (R&D). In FY 2020, Cochlear spent $185 million or ~14% of revenue on R&D. This is expected to increase to between $190 million and $195 million in FY 2021 as management focuses on internet-connected devices.

One broker that believes Cochlear is well-placed for growth is Macquarie. It recently retained its outperform rating and $241.00 price target on the company’s shares. Its industry research shows that Cochlear has been winning market share in the United States. Its products were also the most highly rated according to a survey undertaken with audiologists.

Coles Group Ltd (ASX: COL)

Another popular ASX blue chip share is Coles. It is of course one of Australia’s leading supermarket operators and most recognisable brands. It has been growing at a solid rate in recent years thanks to a combination of same store sales growth, store expansion, and its defensive qualities.

Those qualities were on display for all to see this year when Coles’ sales surged during the pandemic. The good news for investors is that sales remain strong in FY 2021 and a bumper first half result is expected in February. In addition to this, the company’s refresh strategy, which is focusing on cost cutting, automation, and efficiencies, is aiming to underpin solid earnings growth over the 2020s.

Analysts at Citi appear confident that Coles’ strong form can continue. The broker recently retained its buy rating and lifted the price target on the Coles share price to $21.20. It expects groceries demand to remain strong over the medium term. It also notes that margins are firming up thanks to rational competition in the industry.

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

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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