2 top blue chip ASX 200 shares rated as buys

Looking for blue chips? Check out these top shares…

| More on:
Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Image source: Getty Images

If you would like to bolster your portfolio with some blue chips, then you might want to take a look at these ASX 200 shares.

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

ResMed Inc. (ASX: RMD)

The first blue chip ASX 200 share to look at is ResMed. It is one of the world’s leading sleep treatment companies. ResMed has been an exceptionally strong performer over the last decade thanks to its industry leading products and successful acquisitions. This has allowed the company to capture a big slice of a sleep treatment market growing at a quick rate due to the increasing prevalence of sleep disorders.

The good news is that the company still has a very long runway for growth. This is due to the growing awareness of sleep disorders and new products. In addition, ResMed stands to benefit from a major product recall by a key rival.

Credit Suisse is bullish on the company’s prospects. It recently retained its outperform rating and lifted its price target to $44.00. The broker believes ResMed can grow at above-industry rates over the medium term.

Sonic Healthcare Limited (ASX: SHL)

Another blue chip ASX 200 share to look at is Sonic Healthcare. It is one of the world’s leading providers of medical diagnostics, with a reputation for excellence in pathology, diagnostic imaging, and primary care medical services. This is across operations in the ANZ, European, and North American markets.

Sonic has been growing very strongly during the last 18 months. While this has been driven largely by strong demand for COVID-19 testing services, the rest of the business is performing positively as well.

Pleasingly, this strong form is expected to continue. In fact, with COVID testing unlikely to be going away any time soon, the company has been tipped to keep growing strongly for the foreseeable future.

In addition, Sonic has a very strong balance sheet. This gives the company opportunities to accelerate its growth with acquisition.

The team at Morgans are very positive on Sonic’s outlook. The broker has an add rating and $45.98 price target on the company’s shares.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Blue Chip Shares