Having some ASX blue chip shares in your investment portfolio is always a good thing.
But which ones could be great options for investors in June?
Let's look at three that brokers rate very highly right now:
Coles Group Ltd (ASX: COL)
Analysts at Bell Potter think that supermarket giant Coles would be a great blue chip share to buy. Particularly given recent investments to strengthen its market position. It said:
Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off. In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.
Bell Potter has a buy rating and $19.00 price target on Coles' shares.
Qantas Airways Limited (ASX: QAN)
Goldman Sachs sees Qantas as a top ASX blue chip share to buy right now. The broker believes its shares are undervalued based on its structurally stronger earnings and in comparison to global airline peers. It explains:
QAN is trading 4% below pre-COVID market capitalization with the enterprise value still 7% lower despite a structurally improved earnings capacity. Relative to regional/ US peers (median PE of 9.1x), QAN is trading on a 29% discount at 6.4x FY25 PE. This is more than 2x below the historical 5Y average discount of 14%. We expect this gap to narrow as QAN delivers earnings that are sustainably above pre-COVID levels and demonstrates ability/ willingness to distribute capital to shareholders while renewing the fleet.
Its analysts have a conviction buy rating and $8.05 price target on its shares.
Washington H Soul Pattinson & Company Ltd (ASX: SOL)
This investment house could be a great ASX blue chip share to buy according to analysts at Morgans. The broker highlights its track record of strong returns and appears to believe this can continue in the future. 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.
Morgans has an add rating and $35.60 price target on its shares.
