If you're looking for S&P/ASX 200 Index (ASX: XJO) blue-chip shares to strengthen your portfolio, then you may want to check out what Morgans is saying.
Among its best ideas list for the month are the following blue chips. Here's what the broker is saying about them:
Goodman Group (ASX: GMG)
Morgans continues to rate this industrial property company as a buy. While its shares trade at a premium, the broker believes this is more than deserved. It explains:
GMG rarely screens cheap against domestic peers, but within the context of its offshore peers, it consistently delivers higher returns at lower levels of leverage and at a comparable price-to-book (P/B) ratio. […] With continued increases in interest rates and persistent inflation (most notably construction costs), risks abound the REIT sector. This drives our preference for beds and sheds, reflecting the strength of those underlying operating markets.
Its analysts have an add rating and a $24.50 price target on Goodman's shares.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 blue-chip share that Morgans has on its best ideas list is Wesfarmers. The broker likes the Bunnings and Kmart owner due to its strong management team, healthy balance sheet, and focus on value. 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 and market share gains in a softening macroeconomic environment.
Morgans has an add rating and a $55.15 price target on Wesfarmers shares.
