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:
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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.
