Investors that are looking to bolster their portfolio with some blue chip ASX 200 shares might want to check out the two listed below.
Both of these ASX 200 shares have recently been rated as buys. Here's why analysts are bullish on them:
Cochlear Limited (ASX: COH)
Analysts at Morgans are positive on this hearing solutions company following the release of its full year results. The broker notes that its "FY22 results tracked our estimates and guidance."
Looking ahead, its analysts appear confident that Cochlear's growth can continue. It explained:
We see continued momentum, with N8 launch underpinning continued gains across Services, and ongoing recovery and backlog supporting CI growth, despite likely slower uptake, clinical capacity shifts and cloud-computing costs.
Despite juggling a lot of moving parts (eg new IT system; N8 launch; Oticon acquisition; China factory commissioning), management has a strong record of executing, coupled with improving demand, portends a solid earnings profile.
In light of this, the broker has retained its add rating with a $236.70 price target on the company's shares. This compares favourably to the current Cochlear share price of $215.01.
Rio Tinto Limited (ASX: RIO)
Another ASX 200 blue chip share that has been given the tick of approval by analysts is mining giant Rio Tinto.
The team at Goldman Sachs remains very positive on the miner. This is due to its "compelling valuation," with its shares trading at a sizeable discount to net asset value.
In addition, the broker believes that Rio Tinto will generate significant free cash flow and is on the cusp of returning to production growth. It commented:
Rio is a FCF story in our view, but despite challenges in 1H22, we see RIO returning to production growth in 2H22 with +6% in Cu Eq prod growth in 2023E driven by the Gudai-Darri iron ore mine and a rebound in mined copper volumes.
Goldman has a buy rating and $121.50 price target on the miner's shares. Based on the current Rio Tinto share price of $97.66, this implies potential upside of 24% for investors.
