2 high quality ASX 200 blue chip shares with major upside potential

These blue chips could be top options right now…

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Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then you may want to check out the ones listed below.

These quality companies have been tipped as blue chips to buy. Here’s why analysts are so positive on them:

Rio Tinto Limited (ASX: RIO)

If you’re not averse to investing in the resources sector, then it could be worth considering this mining giant.

The recent collapse in iron ore prices has weighed heavily on the Rio Tinto share price, but it is worth remembering that the company is far from a one-trick pony. Rio Tinto is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Goldman Sachs is very positive on Rio Tinto and has just retained its buy rating and $121.00 price target on the mining giant’s shares. This compares favourably to the latest Rio Tinto share price of $95.07.

The broker is bullish on Rio Tinto due to its attractive valuation, strong free cash flow, production growth potential, and its exposure to low emission aluminium.

In respect to the latter, Goldman commented: “In addition to copper production growth, RIO has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions.”

Suncorp Group Ltd (ASX: SUN)

Another ASX 200 blue chip share to look at is Suncorp. It is one of Australia’s leading banking and insurance companies with a collection of popular brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

Citi is very positive on Suncorp and recently reaffirmed its buy rating and $12.80 price target on the company’s shares. This compares to the current Suncorp share price of $11.09.

While the broker suspects that the company’s near term performance could be subdued, it remains very positive on the longer term and believes now would be a good time to start buying shares.

Citi said: “While we still see SUN as more of a medium term than shorter term story, our analysis suggests the current share price is a reasonable entry point even so. Largely to reflect lower impairment charges, we nudge up our FY22E EPS by 1% and retain our Buy call and A$12.80 TP.”

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 over ten 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 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 no position in any of the stocks mentioned. 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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