2 ASX 200 blue chip shares analysts rate as buys

Analysts are fans of these blue chip shares…

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Investors that are looking to strengthen their portfolio with some blue chip ASX 200 shares may want to look at the two listed below.

Here’s why these blue chip ASX 200 shares are rated as buys:

BHP Group Ltd (ASX: BHP)

The first ASX 200 blue chip share to look at is BHP. The Big Australian’s shares have pulled back materially recently following a sharp decline in the iron ore price.

However, it is worth noting that the price of the steel making ingredient is still notably higher than the mining giant’s production costs.

It also has diverse operations and is benefiting from rises in other commodity prices.

Macquarie remains very positive on the company. In fact, earlier this week the broker put an outperform rating and $55.00 price target on BHP’s shares. Its analysts are also forecasting generous dividend payments in the coming years.

ResMed Inc. (ASX: RMD)

Another ASX 200 share to look at is this sleep treatment-focused medical device company.

Over the last decade, ResMed has become one of the leaders in the sleep treatment market. This has been driven by its high level of investment in R&D and acquisitions. Combined, the company now has a portfolio of industry-leading hardware and software products.

This leaves it well-placed to benefit from the growing sleep treatment market. Management estimates that there are ~1 billion people suffering from sleep apnoea worldwide, with only ~20% of these sufferers currently diagnosed.

ResMed also looks well-placed to benefit from the shift to home healthcare and a major product recall from a key rival.

Credit Suisse is a fan of ResMed. Last week the broker retained its outperform rating and lifted its price target on the company’s shares to $44.00. It believes ResMed is well-placed to grow at above industry rates. The broker also feels the market is under-appreciating the potential market share gains it will make from the aforementioned product recall.

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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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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