One thing the Australian share market is not short of is blue chip shares. But with so many to choose from it can be hard to decide which ones to buy over others.
To help narrow things down, I have picked out two top blue chip shares that are rated as buys. They are as follows:
CSL Limited (ASX: CSL)
The first blue chip ASX share to consider is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring business and the Seqirus business. The CSL Behring business is the global leader in a plasma therapies industry worth a massive US$30 billion per year. Whereas Seqirus is the number two player in the US$6 billion global influenza vaccines industry.
While COVID-related plasma collection headwinds have been weighing on CSL’s performance, this is only expected to be a temporary headwind. In light of this, investors may want to focus more on the long term, which remains very positive for CSL. This is due to its strong portfolio of life-saving therapies and vaccines and its lucrative research and development pipeline.
Morgans is positive on CSL and currently has an add rating and $324.40 price target on its shares.
Goodman Group (ASX: GMG)
Another blue chip ASX share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties. Many of these properties have exposure to key growth markets such as ecommerce and logistics, which has been a key driver of Goodman’s stellar performance in recent years.
Pleasingly, this strong demand remains today, which led to Goodman upgrading its FY 2022 earnings guidance this week. Instead of 10% growth, the company now expects to deliver operating earnings per share growth of at least 15%.
This went down well with the team at Citi. In fact, the broker still feels this guidance in conservative and that Goodman will outperform it. As a result, Citi has retained its buy rating and lifted its price target to $27.50.