If you're looking to strengthen your portfolio with some new ASX 200 shares, then you may want to consider the two listed below. Both have recently been named as buys by analysts.
Here's what they are saying about these ASX 200 blue chip shares:
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Qantas Airways Limited (ASX: QAN)
The first blue chip ASX 200 share that has been named as a buy is Australia's flag carrier airline, Qantas.
Goldman Sachs is a big fan of the company and has been very impressed with its transformation since the pandemic. This is something the broker believes the market is underappreciating. As a result, it sees significant value on offer with its shares. It commented:
While we acknowledge broader macro uncertainty at this point in the cycle, we believe that the -7% share price reaction on results day (and the current share price) does not reflect the group's improved earnings capacity. 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 only 10% above pre-COVID levels (EV 8% lower).
Goldman has a conviction buy rating and $8.30 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Another ASX 200 share that is rated highly by analysts is telco giant Telstra.
Morgans is very positive on the company. This is due to favourable industry conditions, its successful transformation, and the potential for value to be unlocked from asset sales. It explained:
Telco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised. The last major mobile operator Vodafone/TPG increased mobile prices by ~$5 per month in January 2023 and all key players are behaving economically rational. This combines with catalysts including the potential for InfraCo value release following the legal restructure.
Morgans currently has Telstra on its best ideas list with an add rating and $4.70 price target.
