Do you have room in your portfolio for some ASX 200 blue chip shares?
If you do, then it could be worth listening to what analysts at Bell Potter are saying about the two named below.
Here's why its analysts think they would be great options for investors right now:
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Premier Investments Limited (ASX: PMV)
Analysts at Bell Potter are feeling positive about this retail giant and see it as an ASX 200 blue chip share to buy.
The broker is particularly bullish on the Smiggle and Peter Alexander brands, that could soon be spun off into separate listings. It also sees a lot of positives from the proposed merger with Myer Holdings Ltd (ASX: MYR). It said:
In addition to PMV's market share of ~6% in the apparel vertical and ~15% in the stationary space in Australia, the Smiggle brand is also a large player in the UK market. As the Smiggle brand looks to grow its presence in Middle East & Indonesia via a low-risk wholesale model and Peter Alexander into the UK, we think the two brands have a long runway ahead. PMV is currently trading on ~15x FY26e P/E (BPe) which we think is conservative given the value that we see emerging from the potential demerger of PMV's two key brands, Smiggle and Peter Alexander which we believe are global roll-out worthy and highly profitable. We see further upside from the higher ownership PMV shareholders could receive in the Myer Group (MYR) given the potential to grow post MYR's turnaround phase and synergies from merging with PMV's apparel brands.
Its analysts currently have a buy rating and $35.00 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
Bell Potter also thinks that TechnologyOne could be a great ASX 200 blue chip share to buy.
It believes its shares could re-rate to higher multiples due to its accelerating growth and predictable earnings. It explains:
The company designs, develops and installs ERP (enterprise resource planning) software for medium to large corporate and government customers. A key strength of the company is the software is now almost purely delivered on a SaaS basis (i.e. software-as-a-service) which is the same as companies like WiseTech (WTC) and Xero (XRO). The advantage of this delivery model is it generates recurring revenue for the company and makes the earnings very predictable. The shift to SaaS and the visibility of earnings has driven a re-rating in the PE ratio of the stock from c.30x a few years ago to c.40x now. We believe this re-rating will continue and think a PE of c.50x is ultimately achievable.
The broker currently has a buy rating and $20.25 price target on its shares.
