2 excellent blue chip ASX 200 shares named as buys

These blue chips have been named as buys…

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Are you looking for blue chip ASX 200 shares to add to your portfolio? If you are, the two ASX shares listed below could be worth a closer look.

Here’s what analysts think of these shares:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a world class portfolio comprising warehouses, large scale logistics facilities, and business and office parks.

These properties are in demand and count some of biggest companies in the world as tenants. This led to Goodman reporting a 98.1% occupancy rate at the end of FY 2021. This ultimately underpinned a solid 15% increase in operating profit to $1.22 billion for the 12 months.

Positively, more of the same is expected in the future. Thanks to strong customer demand in its markets, which is translating into high occupancy, rental growth, and strong investment returns, management is guiding to 10% growth in operating earnings per share in FY 2022.

Goodman’s FY 2021 result went down well with analysts at Citi. In response, the broker retained its buy rating and $26.00 price target on the company’s shares. This compares to the latest Goodman share price of $22.99.

REA Group Limited (ASX: REA)

Another blue chip ASX 200 share to consider is REA. This property listings company has been a strong performer in recent years despite battling a housing market downturn and the COVID-19 pandemic. This demonstrates the resilience of REA’s business model and its exceptionally strong position in the ANZ market.

Pleasingly, its strong business model was on display for all to see in FY 2021. REA delivered a 13% increase in revenue to $928 million and a 19% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $565 million. The latter was ahead of expectations.

Positively, with the housing market rebounding strongly, REA’s outlook is looking increasingly positive. This should be boosted by price increases, new revenue streams, acquisitions, and its excellent cost control.

Goldman Sachs is very positive on the company. It has a buy rating and $190.00 price target on its shares. This compares to the latest REA share price of $154.38.

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*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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