If you're looking for blue chip ASX 200 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:
Australia and New Zealand Banking Group Ltd (ASX: ANZ)
The first blue chip ASX 200 blue chip share that analysts are positive on is big four bank ANZ Bank.
It was recently tipped as a buy by analysts at Citi. The broker appears to believe the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) could be a boost if everything goes to plan.
If integrated successfully, we believe the deal looks to represent fair value, with the acquisition PE of 13.8x offset by substantial cost synergies (~35% of SUN Bank cost base), funding cost benefits (due to ANZ's AA rating) and lower capital intensity (a move to AIRB accreditation) over time.
The broker currently has a buy rating and $29.00 price target on the bank's shares. This compares very favourably to the latest ANZ share price of $22.59 and suggests potential upside of 28% for investors.
Woolworths Group Ltd (ASX: WOW)
Another ASX 200 blue chip share that could be in the buy zone is retail giant Woolworths.
The team at Goldman Sachs is bullish on the company and believes it is well placed in the current environment to deliver solid sales growth and even stronger earnings growth. The broker recently commented:
We forecast [a sales] CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth.
Goldman has a buy rating and $40.50 price target on its shares. Based on the current Woolworths share price of $37.25, this implies potential upside of 9% before dividends and 12% including its forecast FY 2023 dividend.
