There are plenty of blue chip ASX 200 shares to choose from on the Australian share market.
But three of the best, according to analysts at Morgans, are listed below. Here's why the broker rates these blue chips highly:
Macquarie Group Ltd (ASX: MQG)
The first ASX blue chip share that could be a buy according to Morgans is investment bank Macquarie. Its analysts are very positive on the company's long term outlook thanks to its exposure to structural growth markets. It explained:
We continue to like MQG's exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.
The broker has an add rating and $214.51 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Due to its attractive valuation compared to peers and its strong earnings growth potential, Morgans believes that this wine giant could be a quality ASX 200 blue chip option for investors. It commented:
TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.
Morgans has an add rating and $15.05 price target on the wine company's shares.
Westpac Banking Corp (ASX: WBC)
Finally, Australia's oldest bank could be a great ASX 200 blue chip share to buy according to Morgans. Its analysts are bullish due to Westpac having the best return on equity improvement potential among the big four. It explained:
We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.
Its analysts have an add rating and $25.80 price target on Westpac's shares.
