2 highly rated blue chip ASX 200 shares

There are many blue chip options for investors on the ASX. Are these among the best?

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Given the large number of blue chip shares out there for investors to choose from, it can be hard to decide which ones to buy.

In order to narrow things down for you, I have picked out two blue chip shares which come highly rated right now. They are as follows:

CSL Limited (ASX: CSL)

The first blue chip share to look at is CSL. It is one of the world’s leading biotechnology companies with a portfolio of leading therapies and vaccines. This includes flu vaccines, immunoglobulins, and countless other plasma-based products.

However, the company isn’t settling for that and continues to invest heavily in its research and development (R&D). In fact, each year, the company invests somewhere in the region of 11% of its sales back into R&D activities. This means that approximately US$1 billion will be spent this year to ensure that the company’s R&D pipeline is filled to the brim with innovative and potentially lucrative products.

One leading broker that is positive on the company is Citi. Its analysts currently have a buy rating and $310.00 price target on its shares.

Sonic Healthcare Limited (ASX: SHL)

Another blue chip ASX 200 share to consider is Sonic Healthcare. It is a leading medical diagnostics company which has been growing at a very strong rate in FY 2021.

For example, during the first half, the company delivered a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million. A key driver of this growth was strong demand for COVID-19 testing services, which was supported by positive performances from the rest of the business.

And with COVID-19 testing expected to remain strong for a little while to come, Sonic looks set to continue its growth in FY 2022. In addition to this, due to its strong balance sheet, the company has the optionality to boost its growth through earnings accretive acquisitions.

One broker that is particularly positive on the company is Credit Suisse. It has an outperform rating and $40.00 price target on the company’s shares.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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