If you're in the market for some blue chip ASX 200 stocks, then you might want to look at the two listed below.
These two ASX 200 stocks are leaders in their fields and tipped to generate sizeable returns for investors over the next 12 months.
Here's why analysts rate them as buys:
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BHP Group Ltd (ASX: BHP)
Analysts at Goldman Sachs are fans of the Big Australian. They currently have a buy rating and $49.90 price target on its shares.
This compares favourably to the current BHP share price of $42.82, implying potential upside of almost 17%. And that's not including the generous ~6% dividend yields the broker is forecasting this year and next.
Goldman commented:
Our Buy thesis on BHP is based on: (1) Attractive valuation, but at a premium to S32 & RIO (2) GS bullish iron ore, copper and met coal, (3) Optionality with +US$20bn copper pipeline and improved production growth, (4) Robust FCF, but still below RIO & S32.
Goodman Group (ASX: GMG)
Over at Citi, its analysts believe that this integrated industrial property company is a top buy.
The broker currently has a buy rating and $24.30 price target on its shares. Based on the latest Goodman share price of $20.10, this means potential upside of almost 21% for investors.
Citi has been impressed with Goodman's performance again in FY 2023 and feels it is well-positioned to continue delivering solid earnings growth for some time to come. It said:
We see potential for GMG to generate consistent high-single to low-double digit earnings growth over the medium term driven by rental upside and longer term development projects, which will add to management and development earnings. The stock currently trades at c. 19x FY24e, below global industrial peers, despite having higher earnings growth and lower leverage. We therefore see upside to the share price and retain Buy.
