The ASX 200 index is home to 200 of the largest listed companies on the Australian share market.
While there are a number of quality options on offer in the index, two that could be in the buy zone with material upside are listed below.
Here's what you need to know about these ASX 200 shares:
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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 in recent months following a sharp decline in the iron ore price.
While the weakness in the price of the steel making ingredient is disappointing, it still notably higher than BHP's cost of production. As a result, the company's operations are still generating significant free cash flow. As are many of its non-iron ore operations which are benefiting from rises in other commodity prices.
Macquarie remains very positive on the company. It currently has an outperform rating and $52.00 price target on BHP's shares.
CSL Limited (ASX: CSL)
Another ASX 200 share to look at is CSL. It is one of the world's leading biotherapeutics companies.
CSL has been a very positive performer over the last decade. This has been driven by successful acquisitions, its high level of investment in R&D activities, its growing plasma collection network, and its leading therapies and vaccines.
In respect to the latter, CSL's portfolio includes lucrative and life-saving products such as Privigen, Hizentra, Idelvion, and Afstyla. It will soon add leading iron deficiency, nephrology and cardio-renal therapies to these with the acquisition of Vifor Pharma for $17 billion.
But it doesn't stop there. Thanks to its ~US$1 billion spend on R&D annually, CSL has a pipeline of lucrative products under development to drive its future growth.
Last week Citi upgraded the company's shares to a buy rating with a $340.00 price target.
