Having a few ASX 200 blue-chip stocks in your portfolio could be a good idea if you want to strengthen it up.
But which ASX 200 blue chips could be top options? Well, two that have recently been tipped as buys with plenty of upside potential are listed below.
Here's why analysts are bullish on these high-quality ASX shares:
CSL Limited (ASX: CSL)
The first ASX 200 blue chip stock that could be a top buy is CSL. It is the biotherapeutics giant behind the CSL Behring, CSL Vifor, and Seqirus businesses.
Morgans is a huge fan of the company and has it on its best ideas list with an add rating and $323.00 price target on its shares. Its analysts believe CSL would be a key portfolio holding for investors. They said:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.
Woolworths Limited (ASX: WOW)
Another ASX 200 blue chip stock that could be a buy is Woolworths. It is the retail conglomerate behind the Woolworths supermarket chain and other brands such as Countdown and Big W.
Goldman Sachs is a big fan of the company and has a conviction buy rating and a $42.80 price target on its shares. The broker believes Woolworths is well-placed to grow its market share thanks to its loyalty program and omnichannel advantage. It said:
We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.
