If you are wanting to invest in some ASX 200 blue-chip shares, then Morgans has your back.
It has just released its best ideas for December and has named several blue chip stars on its list.
Two that could be top options this month are listed below. Here's why its analysts rate them highly:
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Goodman Group (ASX: GMG)
Morgans continues to rate this industrial property company as an ASX 200 blue-chip share to buy.
It likes the company due to its preference for beds and sheds in the property market. In addition, it highlights Goodman's track record of delivering higher returns compared to peers. The broker 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 ratio. Growth in Assets Under Management and development completions are a key determinant of value and an AUM of A$80bn (US$50m) is comparatively modest in a global context, whilst A$7bn (US$5.5n) of completions pa we see as likely sustainable. 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.
Morgans has an add rating and a $24.50 price target on its shares.
Qantas Airways Limited (ASX: QAN)
Another ASX 200 blue-chip share that could be a buy is airline operator Qantas.
Morgans believes that the company's shares are very cheap considering its structurally higher earnings. In light of this, its analysts feel that investors should be snapping them up while they are down. It said:
QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings). The strong pent-up demand to travel post-COVID should result in a healthy demand environment for some time, underpinning further earnings growth over FY24/25. QAN's balance sheet strength positions it extremely well for its upcoming EBIT-accretive fleet reinvestment and further capital management initiatives (recently announced another A$500m on-market share buyback at its FY23 result).
The broker has an add rating and a $7.30 price target on Qantas' shares.
