If you’re wanting to buy some blue chip ASX 200 shares then the two listed below could be worth considering.
These blue chips have been named by Bell Potter as some of its top picks for 2022. Here’s what it is saying about them:
National Australia Bank Ltd (ASX: NAB)
The first blue chip ASX 200 share that is rated as a buy is banking giant NAB. The broker likes the bank due to its positive post-COVID outlook and strong balance sheet.
Bell Potter commented: “NAB’s FY21 performance reflected a better credit impairment outcome more than anything else but there was still ongoing momentum across home lending (+2.5%), SME lending (+5.1%) and New Zealand (a whopping +11.2%). Overall, there is nothing to suggest things haven’t improved and the bank rightly remains “optimistic about the long-term outlook for Australia and New Zealand.”
“The longer term operating environment post COVID-19 remains positive for ANZ and NAB. Both are well-provisioned and well-placed to capitalise on post- pandemic opportunities in retail and SME banking,” it added.
Its analysts have a buy rating and $31.00 price target. This compares to the latest NAB share price of $28.89.
TechnologyOne Ltd (ASX: TNE)
In the tech sector, Bell Potter believes Technology One could be an ASX 200 blue chip to buy. It believes the company is well-placed for double digit earnings growth as customers shift to its software-as-a-service (SaaS) offering.
The broker commented: “Technology One is a provider of ERP (enterprise resource planning) software to large corporates and government agencies in Australia, New Zealand, Asia Pacific and the UK. The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution.”
“The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company. Buy, Price Target $15.00,” it concluded.
This price target is meaningfully higher than the current Technology One share price of $12.79.