2 blue chip ASX shares rated as buys

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If you would like to bolster your portfolio with some blue chips, then you might want to take a look at these ASX shares.

Here’s why these blue chip shares are highly rated:

CSL Limited (ASX: CSL)

CSL could be a blue chip share to look closer at. It is one of the world’s leading biotherapeutics companies with operations across 60 countries and major facilities in Australia, Germany, Switzerland, the United Kingdom, and the United States.

Through its CSL Behring and Seqirus businesses, it has a focus on rare and serious diseases and influenza vaccines. These businesses have portfolios of life-saving therapies and vaccines that are generating billions of dollars in revenue each year.

Pleasingly, management continues to invest heavily in its research and development (R&D) to ensure that its pipeline is filled with innovative and potentially lucrative products. In fact, the company invests somewhere in the region of 11% of its sales back into R&D activities each year. This will see it invest ~US$1 billion in these activities this year.

One leading broker that is positive on the company is UBS. It currently has a buy rating and $330.00 price target on its shares.

SEEK Limited (ASX: SEK)

SEEK is the leading job listings company in the ANZ region and has a number of growing businesses around the globe.

In respect to the former, at the end of the first half, SEEK was averaging 35 million monthly visits and had 160,000 active hirers. This led to the company having almost a third of all placements in the region. This is a sizeable five times greater than its nearest rival.

This means the company is perfectly positioned to benefit from Australia’s strong economic recovery from the pandemic. In fact, recent unemployment data has been very positive and is expected to continue improving over the next couple of years. This bodes well for job ad volumes and SEEK’s top line growth.

Macquarie is very positive on SEEK. Last week it upgraded its shares to an outperform rating and increased the price target on them to $40.00.

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James Mickleboro owns SEEK shares. 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 SEEK 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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