Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then I would suggest you check out the two listed below.
These quality companies could have the potential to grow at a solid rate over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:
Cochlear Limited (ASX: COH)
The first ASX 200 blue chip share to look at is Cochlear. It is a global leader in the development, manufacture, and distribution of cochlear implantable devices for the hearing impaired.
Among its growing portfolio of world class products you will find the Nucleus Profile Plus Series cochlear implant and the Nucleus Kanso 2 Sound Processor.
While the pandemic had a big impact on the company due to the deferral of elective surgeries, the company has bounced back strongly. For example, in February Cochlear released its half year results and reported an underlying net profit of $125.3 million.
While this was down 4% on the prior corresponding period, it is worth remembering that the prior period was before COVID-19 was a thing. Not only that, it was also a record first half profit.
Looking ahead, the company looks well-placed for growth in the future thanks to the ageing populations tailwind, its strong market position, wide distribution network, and the industry’s high barriers to entry.
Macquarie is a fan of the company. Its analysts currently have an outperform rating and $245.00 price target on Cochlear’s shares.
Woolworths Limited (ASX: WOW)
A second blue chip ASX 200 share that has been rated as a buy is Woolworths. The retail giant has been tipped as a buy due to the favourable outlooks for its key businesses. These include BIG W, BWS, Dan Murphy’s, and the jewel in the crown, Woolworths supermarkets.
In addition to this, the company has just confirmed that it plans to go ahead with its demerger of the Endeavour Drinks business in the very near future. This is expected to strengthen its balance sheet and lead to upwards of $2 billion of capital returns for shareholders.
Macquarie is also a fan of Woolworths. Earlier this week its analysts retained their outperform rating and $44.50 price target on the company’s shares.