Buy NAB and this ASX 200 blue chip share: brokers

Brokers say that these blue chip shares could give your portfolio a boost…

Are you wanting some more ASX 200 blue chip shares for your portfolio? Then read on!

Listed below are two blue chip shares that have been rated as buys by brokers. Here's what they are saying about them right now:

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National Australia Bank Ltd (ASX: NAB)

The first ASX 200 share to buy is NAB, which is of course one of Australia's big four banks.

Goldman Sachs is tipping the banking giant as a buy due largely to its exposure to commercial lending.

In addition, along with Westpac Banking Corp (ASX: WBC), the broker believes that NAB is well-placed to deliver double digit returns for investors over the coming years. It recently commented:

The major Australian banks have been in the midst of an EPS upgrade cycle, with 12-month forward EPS having increased by an average of 21% p.a. over the last two years. However, the outlook is now less optimistic, with 12-month forward EPS now only representing a c. 4% p.a. tailwind to share prices over the next three years. Despite this, the outlook for our two Buy stocks, WBC (on CL) and NAB, is better, and we highlight why we think double digit total shareholder returns remains achievable over the next three years.

Goldman Sachs has a buy rating and $35.60 price target on its shares. It also expects a $1.78 per share fully franked dividend in FY 2023, which equates to a generous 5.6% yield.

ResMed Inc (ASX: RMD)

Another blue chip ASX 200 share that could be a buy is ResMed. It is a medical device company with a focus on sleep disorder treatments.

While it has had a bumpy time during the pandemic, trading conditions appear to be returning to normal now for its core sleep treatment business. Combined with growth in the digital business, the team at Morgans is tipping ResMed for big things in the future. It commented:

While we expect the next few quarters to be volatile as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans has an add rating and $37.00 price target on ResMed's shares.

Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Westpac Banking. 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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