If you want to build a balanced portfolio, having a few blue chip S&P/ASX 200 Index (ASX: XJO) shares would be a smart move.
But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down for you, I have picked out two ASX 200 blue chip shares that are highly rated:
Goodman Group (ASX: GMG)
Goodman Group is a leading integrated commercial and industrial property company with operations across the world. Among its portfolio are warehouses, data centres, large scale logistics facilities, and business and office parks.
The company currently has $57.9 billion of total assets under management globally, 363 properties, and over 1,600 customers. Among the latter are the likes of Amazon, Coles Group Ltd (ASX: COL), DHL, Showpo, and Walmart.
Goodman has been growing its earnings at a strong rate over the last decade thanks to its highly successful strategy.
This strategy sees the company choose locations that are close to large urban populations and in and around major gateway cities globally. It notes that this is where demand is strong and transformational changes are driving significant opportunities.
Citi appears confident this positive form can continue. It has a buy rating and $26.00 price target on Goodman’s shares.
REA Group Limited (ASX: REA)
Another blue chip ASX 200 share to look at is REA Group. It is a leading property listings company with operations in Australia and several international markets. It also has a number of complementary businesses bolstering its growth further.
Once again, REA dominated the property listings market in Australia in FY 2021. For the 12 month ended 30 June, 12.6 million people visited realestate.com.au each month on average. This led to 121.9 million average monthly visits, which was up 35% year on year and was 3.3 times more than its nearest competitor.
This dominant position leaves REA Group well-placed to continue its fine form in the years ahead. Particularly given the improving housing market, price increases, cost reductions, acquisitions, and new revenue streams.
Macquarie is very positive on the company. The broker currently has an outperform rating and $185.00 price target on its shares.