Having some strong blue-chip ASX 200 shares in your portfolio can provide investors with a firm foundation to build from.
But which blue chips would be good options right now?
Well, two that brokers have named as buys are listed below. Here's why these brokers believe they could be great long-term picks for investors:
Goodman Group (ASX: GMG)
The first blue-chip share that could be a buy according to analysts is Goodman.
The team at Citi believes the vertically integrated, internally managed global industrial property group is well-positioned for growth over the long term. It said:
Demand supply dynamics remain tight in industrial and GMG's large development pipeline and solid track record, along with data center opportunities should drive the growth in earnings over the medium term. The stock trades at c.21x FY24e but with a consistent double-digit earnings growth outlook over the next 3-5 years, we see good value here.
Citi currently has a buy rating and a $25.50 price target on Goodman's shares.
REA Group Limited (ASX: REA)
Another blue chip ASX 200 share that has been named as a buy is REA.
Goldman Sachs is a big fan of the realestate.com.au operator and sees it as one of Australia's highest-quality businesses. It recently said:
We believe REA is among the highest-quality names in our coverage, given it has the highest ability to continue to drive pricing, with: (1) significant disparity between lead share and revenue share; (2) the lowest cost relative to overall transaction; (3) a profitable and still fragmented end market; and (4) the existence of Vendor Paid advertising, with strong valuation support with current trading multiples well below historical levels.
The broker currently has a buy rating and a $179 price target on its shares.
