There are a lot of blue chip ASX 200 shares for investors to choose from on the Australian share market. Two that have recently been named as buys are listed below.
Here's why they could be in the buy zone:
CSL Limited (ASX: CSL)
The first blue chip ASX 200 share that is highly rated is CSL.
CSL is one of the world's leading biotechnology companies. It is the owner of the number one plasma therapies business, CSL Behring, the world's second largest influenza vaccine business, Seqirus, and the global leader in iron deficiency and iron deficiency anaemia therapies, CSL Vifor.
But CSL never rests on its laurels. In fact, each year the company makes a material investment in research and development (R&D). This investment usually sits in the region of 11% to 12% of sales, which now means more than US$1 billion goes into these activities each year. This ensures that the company has a pipeline of potentially lucrative and life-saving therapies to support its future growth.
Supporting this will be improvements in plasma collections and the company's new collection technology. The latter is expected to boost margins by collecting plasma more efficiently and deliver stronger yields.
Morgan Stanley is positive on CSL and currently has an overweight rating and $354.00 price target on its shares.
ResMed Inc (ASX: RMD)
Another ASX 200 blue chip share that is highly rated is ResMed.
It is a global leader in the development, manufacturing, distribution, and marketing of medical devices and cloud-based software for the diagnosis, treatment, and management of respiratory disorders.
This is a huge market to operate in. For example, 1 in 5 adults are estimated to suffer from sleep apnoea, with the vast majority of them undiagnosed.
The team at Morgans is very positive on the company. It believes ResMed is well-placed to grow its market share in the lucrative sleep treatment market and sees a big opportunity in out of hospital care thanks to its digital business.
Morgans currently has an add rating and $37.00 price target on the company's shares.
