2 blue chip ASX 200 shares that Goldman Sachs rates as buys

These ASX 200 shares could be buys according to Goldman Sachs…

| More on:
A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you’re wanting to load up on blue chip shares following the market selloff, then look no further.

Listed below are two ASX 200 blue chips that Goldman Sachs rates as buys. Here’s what it is saying:

REA Group Limited (ASX: REA)

The first blue chip ASX 200 share for investors to consider buying is REA. It is the operator of realestate.com.au, which is the dominant player in real estate listings in the Australian market.

It could be a top option for investors due to the recent pullback in its share price, which has come despite management’s positive outlook commentary. REA recently stated that it remains confident it can achieve double digit revenue/EBITDA growth through the cycle.

This went down well with the team at Goldman Sachs, which has a buy rating and $167.00 price target on its shares. Based on the current REA share price of $103.44, this implies potential upside of 61% for investors.

Goldman said:

Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 blue chip share that could be in the buy zone is Woolworths. It is of course the retail giant behind the eponymous Woolworths supermarket and Big W brands.

The team at Goldman Sachs is very positive on the company’s outlook even in the current environment. It recently reiterated its buy rating and $41.70 price target on the company’s shares. Based on the current Woolworths share price of $33.83, this implies potential upside of 23% for investors.

Goldman is forecasting solid sales and earnings growth through to FY 2024. It explained:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

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

More on Blue Chip Shares

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads news about the top ASX 200 shares today
Blue Chip Shares

Brokers name 2 blue chip ASX 200 shares to buy

Here are two blue chip ASX 200 shares to buy...

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Blue Chip Shares

Brokers say BHP and this ASX 200 share are buys

Here are two ASX 200 shares rated as buys....

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Blue Chip Shares

2 blue chip ASX 200 shares tipped as buys by experts

These blue chip have been rated as buys...

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Blue Chip Shares

2 ASX 200 blue chip shares brokers rate as buys

Here are two ASX 200 shares to buy...

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Blue Chip Shares

Expert says Telstra is a blue chip ASX 200 share to buy

Telstra could be an ASX 200 share to buy...

Read more »

Group of smiling coal miners in a coal mine
Blue Chip Shares

Clearly this is one of the cheapest ASX 200 stocks

Although the Whitehaven Coal share price has already soared 130% in 2022, it still looks incredibly cheap.

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads news about the top ASX 200 shares today
Blue Chip Shares

2 blue chip ASX 200 shares analysts rate as buys

These blue chip shares could be buys in August...

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

Broker names 3 ASX 200 shares to buy and hold

Here are three top shares for buy and hold investors...

Read more »