Analysts name 2 high quality ASX blue chip shares to buy right now

Here are two ASX blue chip shares to buy…

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If you’re looking for blue chip shares to buy, then you may want to consider the two listed below that brokers are bullish on.

Here’s what you need to know about these blue chips:

Cochlear Limited (ASX: COH)

Cochlear is one of the world’s leading manufacturers and distributors of cochlear implantable devices for the hearing impaired.

It has been growing at a solid rate for decades and looks well-placed to continue this trend long into the future. This is thanks to its strong position in a market with high barriers to entry and the tailwinds from ageing population around the world.

Analysts at Morgans are bullish on this blue chip, particularly given its improving earnings profile post-pandemic.

Morgans commented:

Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.

The broker currently has an add rating and $244.50 price target on Cochlear’s shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is an enterprise software provider with a focus on the government, financial services, health and community services, education, and utilities and managed services markets.

Like Cochlear, this blue chip has been growing for decades and has now carved out a leadership position in Australia. But management isn’t settling for that and is now aiming to grow its share of the much larger UK market.

The company is also transitioning to be a software-as-a-service (SaaS) provider. This shift has been going very well and is underpinning stellar recurring revenue growth.

Goldman Sachs has been impressed and expects the company’s annual recurring revenue (ARR) growth targets to be achieved. It said:

In our view, TNE is well-placed to meet its A$500mn FY26 ARR target and we are more constructive than consensus and the market (as implied by TNE’s current share price). SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).

Goldman has a buy rating and $13.30 price target on this blue chip’s shares.

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 positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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