Are you on the lookout for some blue chip ASX 200 shares to strengthen your portfolio?
If you are, then you might want to check out the two listed below that have been named as top picks this month. Here's why brokers are bullish on them:
Brambles Limited (ASX: BXB)
The first ASX 200 blue chip share that could be a buy is Brambles. It is a supply chain solutions company that specialises in reusable pallets, crates, and containers for shared use.
The team at Bell Potter is very positive on Brambles. In fact, the broker recently named it as one of its top picks for the month. Its analysts like the company due to its exposure to structural tailwinds and its ability to pass on higher costs. It said:
Overall, we are optimistic about the ongoing structural improvements within the business underpinned by supply chain efficiencies, automation benefits and improved data analytics. Additionally, Bramble's scale of business allows the company to pass some of the costs associated with inflation to its customers through its own price rises and surcharges. Further expansion into emerging markets should generate additional earnings growth.
The broker has a buy rating and a $15.65 price target on Brambles shares. This implies an 11% upside from current levels.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 blue chip share that has been tipped as a buy this month is Wesfarmers.
It is the conglomerate that owns a diverse portfolio of high-quality businesses. This includes Bunnings, Kmart, Officeworks, Priceline, Target, and WesCEF.
Morgans believes the company is a top pick right now. Particularly given how many of its retail businesses have a focus on value, which could prove important in the current environment. It said:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.
The broker currently has an add rating and a $55.50 price target on Wesfarmers' shares. This implies just under 10% upside from current levels.