If you're wanting to build a strong portfolio, then having a few blue chips in there could give you a great foundation.
But which blue chip ASX 200 shares could be in the buy zone? Here are two to consider:
Goodman Group (ASX: GMG)
The first blue chip ASX 200 share that could be a buy is this leading integrated commercial and industrial property company.
Goodman has been growing at a strong rate for many years thanks to the success of its strategy of developing high quality industrial properties in strategic locations.
The good news is that Citi expects this strategy to deliver further solid growth in the coming years. Particularly given the strong demand for industrial property. As a result, It has put a buy rating and $23.50 price target on its shares.
In response to Goodman's first quarter update, the broker said:
[W]e believe the key positive to come out of today's update was the fact that asset values are rising despite higher cap rates. We therefore continue to favour industrial exposure, and remain attracted to GMG's best-in-class balance sheet. We continue to see potential for upside to guidance, and retain Buy on GMG
National Australia Bank Ltd (ASX: NAB)
Another ASX 200 blue chip share to consider this month is NAB.
It is of course one of Australia's big four banks, offering a comprehensive and integrated range of banking and financial services.
Goldman Sachs is a fan of NAB due to its exposure to commercial lending, which it believes will perform better than home lending in the current economic environment. The broker has a buy rating and $35.41 price target on the banking giant's shares.
Its analysts explained why NAB could be a top option for investors right now. They said:
Our Buy rating on NAB is predicated on: i) NAB providing the best leverage to the thematic that domestic volume momentum will favour commercial over housing volumes over both the short- and medium-term, ii) our expectation that commercial lending will be better insulated from competitive pressures particularly prevalent in mortgage lending, iii) NAB's cost management initiatives, which seem further progressed vs. peers, has allowed it to deliver the highest levels of productivity over the last three years, and we think this leaves it well positioned for an environment of elevated inflationary pressure.
