With earnings season behind us, now could be a good time to look at making some new additions to your portfolio.
Two blue chip ASX 200 shares that have been named as buys recently are listed below. Here's what you need to know about these shares:
Goodman Group (ASX: GMG)
Goodman could be a blue chip ASX 200 share to buy this month.
The leading industrial property company notes that its global property expertise, integrated own+develop+manage customer service offering, and significant investment management platform helps create innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.
This strategy has delivered the goods over the last decade with Goodman recording strong earnings and above-average returns.
The good news is that analysts at Citi believe that this strong form can continue. As a result, the broker has put a buy rating and $24.00 price target on its shares. It commented:
GMG's 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. […] We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.
Qantas Airways Limited (ASX: QAN)
Another blue chip ASX 200 share that has been named as a buy is Qantas.
It is of course the flag carrier airline of Australia and the operator of the Qantas and Jetstar brands. The company also has a lucrative loyalty business and an important freight business.
Goldman Sachs is a big fan of the company and has been impressed with its post-pandemic transformation. So much so, it believes the market is seriously undervaluing its shares at present.
Goldman has a conviction buy rating and $8.30 price target on its shares. It commented:
Notwithstanding a decline in unit revenues (and group capacity still at 96% of pre-COVID), our estimated FY24e EPS sits 65% above pre-COVID levels. Despite this, QAN's market capitalisation is 1% below pre-COVID levels (EV 14% lower). We acknowledge broader macro uncertainty at this point in the cycle, but we believe the current share price does not reflect the group's improved earnings capacity.
