2 outstanding blue chip ASX 200 stocks to buy for FY25

Let's see why analysts have slapped buy ratings on these shares in the new financial year.

| More on:
A man holding a cup of coffee puts his thumb up and smiles while at laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you want to bolster your portfolio with some blue chip ASX 200 stocks in FY 2025, then you're in luck!

Listed below are two high-quality blue chips that analysts have rated as buys. Here's what they are saying about them:

Challenger Ltd (ASX: CGF)

Goldman Sachs thinks that this annuities company could be a blue chip ASX 200 stock to buy this financial year.

The broker currently has a buy rating and $7.50 price target on its shares, which implies potential upside of 11% for investors. It is also expecting dividend yields of 3.7%+ through to at least FY 2026.

Goldman likes the company due to its exposure to the growing superannuation market and its belief that higher yields will support sales of retail annuities and boost its margins. The broker commented:

CGF is Australia's largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.

Coles Group Ltd (ASX: COL)

Analysts at Bell Potter think that this supermarket giant could be a great option for investors in the new financial year.

The broker currently has a buy rating and $19.00 price target on its shares. This implies potential upside of 11.5% for investors from current levels. In addition, its analysts are expecting Coles' shares to provide investors with 4%+ dividend yields in the coming years.

Bell Potter believes the blue chip ASX 200 stock could be well-placed for growth as inflation pressures ease and its supply chain modernisation starts to pay off. It said:

Coles Group is a diversified company with operations in food, liquor, petrol retailing and financial services. Coles also retains a 50% ownership interest in Flybuys. 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.

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Blue Chip Shares

Man sits smiling at a computer showing graphs
Blue Chip Shares

4 excellent ASX 200 blue chip shares to supercharge your investment portfolio

These could be blue chip buys this month according to analysts.

Read more »

A smiling boy holds a toy plane aloft while a girl watches on from a car near an airport runway.
Blue Chip Shares

Are Qantas or ANZ shares a better buy?

Which of these two blue chips is a better investment?

Read more »

A business woman flexes her muscles overlooking a city scape below.
Blue Chip Shares

3 super strong blue chip ASX 200 shares to buy in July

These blue chips have been given buy ratings by analysts. Why are they bullish?

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Blue Chip Shares

Buy these ASX 200 shares that could rise 30%+ before it's too late

Analysts think these shares could rise materially from where they currently trade.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Blue Chip Shares

Analysts say these strong ASX 200 blue chip shares are top buys today

These blue chips tick a lot of boxes for analysts. Here's why they are bullish.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Blue Chip Shares

3 of the best ASX 200 blue chip shares to buy now

Analysts think these blue chip stars could be quality options for investors this month.

Read more »

A group of businesspeople clapping.
Blue Chip Shares

Why analysts love Woodside and these ASX blue chip shares

Analysts think these blue chips could be quality options in June.

Read more »

Blue Chip Shares

Bell Potter says these ASX 200 shares are strong buys with 20%+ upside

The broker thinks investors should be snapping up these top stocks this month.

Read more »