Have you got room for a blue chip or two in your portfolio? If you do, then take a look at the blockbuster blue chip shares listed below.
Here’s why they are rated as buys:
Goodman Group (ASX: GMG)
Goodman Group is a leading integrated commercial and industrial property company with $52.9 billion of total assets under management globally. Among its portfolio are warehouses, large scale logistics facilities, and business and office parks. These are leased to high quality companies including Amazon, Coles Group Ltd (ASX: COL), DHL, Showpo, and Walmart.
At the end of the third quarter, the company’s occupancy rate stood at 98% and its net property income was up 3.3% over the prior corresponding period. Management notes that this reflects the strong demand for its properties, which continues to be driven by increased intensification of use, long-term supply chain requirements, tight supply in urban infill locations and the quality of its assets.
In addition to this, the company has $9.6 billion of development work in progress. These developments are expected to underpin further solid income growth over the coming years.
Morgan Stanley is a fan of the company and believes it is well-placed for growth. It recently put an overweight rating and $23.00 price target on its shares.
Xero Limited (ASX: XRO)
Another blue chip ASX 200 share to consider buying is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses. At the last count, the company’s platform was being used by 2.74 million businesses globally. This comprises 1.56 million in the ANZ region and 1.18 million internationally.
Clearly, given the size of the ANZ market compared to the rest of the world, Xero has a very large global market opportunity to grow into over the next decade. In addition to this, it has the opportunity to squeeze more and more revenue out of its users via its burgeoning app ecosystem. It is due partly to the potential of its app ecosystem that Goldman Sachs believes Xero has a multi-decade runway for strong growth.
In light of this, Goldman Sachs is very positive on the company’s prospects. It has a buy rating and $151.00 price target on its shares at present.