Do you have some room in your investment portfolio for a couple of ASX 200 blue chip shares?
If you do, then it could be worth considering the two blue chips listed below that have been named as best ideas by analysts at Morgans.
Here's what the broker is saying about these high-quality companies right now:
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Flight Centre Travel Group Ltd (ASX: FLT)
The first ASX 200 blue chip share that Morgans has named as a buy is Flight Centre.
It is one of the world's largest travel groups with a vast leisure and corporate travel sales network that extends throughout four major regions. These are Australia and New Zealand, The Americas, EMEA, and Asia.
Morgans believes that it would be a great option for investors right now. Particularly given its compelling risk/reward profile. It explains:
FLT has the greatest risk, reward profile of our travel stocks under coverage. The risk is centred around execution given its changed business model, while the reward is material if FLT delivers on its 2% margin target. If achieved, this would result in material upside to consensus estimates and valuations. FLT is targeting to achieve this margin in FY25. With greater confidence in the travel recovery and the benefits of Flight Centre's transformed business model already emerging, we think the company is well placed over coming years.
Morgans has an add rating and $27.27 price target on the company's shares.
Washington H Soul Pattinson & Company Ltd (ASX: SOL)
Another ASX 200 blue chip share that could be a buy according to Morgans is Soul Patts. It is an investment company with a diversified portfolio of assets across a range of industries.
Morgans is very positive on the company's investments and highlights its long track record of outperforming the market. It said:
SOL's investment portfolio includes a diversified pool of assets ranging from listed equities (both large cap and emerging companies), private equity, property and structured yield. On a 20-year horizon, SOL's annualised TSR is 12.5% vs the All Ords accumulation index of 9%. SOL has a 20-year history of increased dividend distributions, with a 20-year CAGR of c.8%. In our view, SOL's management team continues to deliver both organic and inorganic growth over the long term. We continue to like the SOL story, particularly its track record of growing distributions.
The broker has an add rating and $35.60 price target on the company's shares.
