If you're looking to strengthen your portfolio with some new blue chip ASX 200 shares, then you may want to consider the two listed below.
Both have recently been named as buys by the team at Morgans. Here's what the broker has to say about these ASX 200 shares:
South32 Ltd (ASX: S32)
The first blue chip ASX 200 share that Morgans rates highly is South32. It is a mining giant with exposure to a range of commodities such as aluminium and copper. The broker has been pleased with the way South32 has transformed its portfolio and boosted its ESG credentials. It commented:
S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32's risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.
Morgans has an add rating and $6.10 price target on South32's shares. This implies potential upside of 63% from the current South32 share price of $3.73.
Treasury Wine Estates (ASX: TWE)
Another blue chip ASX 200 share that Morgans rates highly is Treasury Wine. Morgans believes the wine giant's shares are great value in comparison to peers and sees strong growth ahead for the company.
TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.
Morgans has an add rating and $13.93 price target on the company's shares. Based on the current Treasury Wine share price of $11.43, this implies potential upside of 22% for investors.
