Are these blue chip ASX 200 shares in the buy zone?

Are these blue chips in the buy zone?

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If you’re looking to add some high quality shares to your investment portfolio, then you might want to look at the ASX 200 shares listed below.

Here’s why brokers are tipping these ASX 200 shares as ones to buy right now:

Goodman Group (ASX: GMG)

Goodman could be an ASX 200 blue chip share to buy according to analysts at Citi.

Its analysts are bullish on the global integrated commercial and industrial property company due to its very positive growth outlook. This is being underpinned by strong demand and its burgeoning development pipeline.

In response to the company’s recent third quarter update, the broker commented:

GMG’s 3Q22 update highlights a continuation of strong conditions, which resulted in guidance for FY22 EPS growth being upgraded to 23% (from 20% previously). Like-for-like rental income, development WIP and AUM all increased, albeit with a FX headwind partially offsetting growth in AUM and WIP. Similar to previous periods, we see FY22 guidance as conservative given strong FUM growth into 4Q22, off the back of development completions and rising asset values (as GMG’s book cap rates are softer than market).

Moreover, despite fears, we see the growth outlook as being robust for FY23 as well given solid demand for industrial (which is driving market rental growth above longer-term averages) and ongoing investment demand, which should support asset value and AUM growth.

Citi currently has a buy rating and $29.50 price target on its shares.

Wesfarmers Ltd (ASX: WES)

Analysts at Morgans believe that Wesfarmers could be an ASX 200 blue chip share to buy.

Although the market has turned a touch negative on the retail sector due to concerns over rising living costs, Morgans remains bullish. This is because it believes the company’s businesses are well-placed to navigate the tough consumer environment.

Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors.

Kmart’s scale and sourcing capabilities underpin its low-cost business model, which allows it to deliver the lowest prices, driving greater demand and scale, and allows further sourcing and product development capabilities. With value expected to become increasingly important, we think Kmart is well-placed to benefit with the average price of an item at around $6-7.

Morgans has an add rating and $58.40 price target on its 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers 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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