Have you got room for a blue chip or two in your portfolio in December? If you are, then take a look at the blockbuster blue chip ASX 200 shares listed below.
Here's why they are highly rated by analysts:
Image source: Getty Images
REA Group Limited (ASX: REA)
The first blue chip ASX 200 share to look at is REA Group. It is the leader in real estate listings in the Australian market. The company's local operations have a significant lead over the competition and are commanding more than triple the visits (121.9 million monthly visits) of its nearest rival.
In light of this, REA Group looks well-placed for growth thanks to the booming housing market. This should be supported by new revenue streams, cost cutting, price increases, its international operations, and acquisitions. The latter has seen the company grow its presence in mortgage broking through the acquisition of Mortgage Choice.
One leading broker that is particularly bullish on REA Group is Macquarie. Its analysts currently have an outperform rating and $192.00 price target on its shares.
Westpac Banking Corp (ASX: WBC)
Another blue chip ASX 200 share that could be in the buy zone is Westpac. Australia's oldest bank has seen its shares crash lower in recent weeks following a disappointing full year result.
Investors were spooked by its weak margin outlook and appeared concerned that it would not achieve its cost cutting plans.
The team at Morgans believe this is a buying opportunity, noting that Westpac's shares offer the most compelling valuation among the big four. Its analysts currently have an add rating and $29.50 price targets on the bank's shares.
Morgans commented: "We find the management of the margin-volume tradeoff in Australian home lending in FY21 to be disappointing and we hope for better management of this tradeoff going forward."
"Having said this, our view has been that the stock was not being priced for perfection and was offering considerable value. While the NIM has now re-based notably lower, we continue to see considerable value in the stock particularly due to our expectation of significant cost out by FY24F," it concluded.
