Buy these ASX 200 blue-chip stocks for 20% returns

Analysts think big returns could be on offer from these shares.

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If you are on the hunt for some ASX 200 blue-chip stocks to buy, then you may want to look at the two in this article.

They may come from very different sides of the market, but they share one thing in common. That is brokers rate them highly and are tipping them to rise strongly from current levels.

Here's what they are saying about these stocks:

Coles Group Ltd (ASX: COL)

Analysts at Morgans think that Coles could be a quality ASX 200 blue-chip stock to buy now. Particularly if you're looking for a combination of market-beating gains and an attractive dividend yield. Morgans commented:

In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL. While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

The broker has an add rating and a $18.95 price target on its shares. This implies potential upside of 17% for investors over the next 12 months.

Making things even sweeter, the broker is forecasting fully franked dividend yields of 4.1% in FY 2024 and 4.3% in FY 2025. This boosts the total 12-month return from this blue chip to beyond 20%.

Mineral Resources Ltd (ASX: MIN)

If you're not averse to investing in the mining sector, then Bell Potter thinks that Mineral Resources could be an ASX 200 blue-chip stock to buy.

It is a mining and mining services company with operations and development projects across energy, iron ore, and lithium.

Bell Potter rates the company highly due to its earnings diversification and growth potential. It explains:

In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN's earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.

The broker has a buy rating and a $85.00 price target on its shares. This implies a potential upside of 19% for investors from current levels. With Bell Potter expecting a ~1% dividend yield in FY 2025, the total potential return stretches to 20%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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