Broker names 2 blue chip ASX shares to buy now

These blue chip ASX shares are highly rated by a top broker…

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If you're looking to make some new blue chip additions to your portfolio, then look no further.

Listed below are two blue chip ASX shares that the team at Morgans are bullish on. Here's what the broker is saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

The first blue chip ASX share that the broker rates highly is wine giant Treasury Wine. In fact, Morgans describes the company as a "key pick" for its analysts.

Morgans is bullish on the company due to its strong brands, positive growth outlook over the coming years, and attractive valuation.

Its analysts commented:

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 Treasury Wine's shares. This compares to the latest Treasury Wine share price of $12.00.

Wesfarmers Ltd (ASX: WES)

Another blue chip that has been rated as a buy is this conglomerate. Morgans rates the company highly due to the strong brands in its retail portfolio and its talent management team.

The broker also believes that recent share price weakness has created a buying opportunity for buy and hold investors.

Its analysts explained:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the pullback in the share price as a good entry point for longer term investors.

Morgans has an add rating and lofty $58.40 price target on Wesfarmers' shares. This compares favourably to the latest Wesfarmers share price of $45.95.

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 Australia has recommended Treasury Wine Estates 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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