If you are in the process of building a portfolio, then having a few ASX 200 blue chip shares in there could be a good starting point.
Blue chips are typically large companies that have been operating for many years, have stable cash flows, experienced management teams, and positive outlooks. It is these qualities that can make them a good foundation to build a portfolio from.
But which blue chip ASX 200 shares could be buys now? Listed below are two high-quality options to consider this week:
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CAR Group Limited (ASX: CAR)
Analysts at Goldman Sachs think that this auto listings company could be a blue chip ASX 200 share to buy.
The broker is positive on the carsales.com.au owner due to its positive earnings momentum both in Australia and internationally. In fact, its analysts believe that the company can deliver earnings growth in the teens through to at least FY 2026. In light of this, they think that its shares are good value at current levels. The broker said:
Following our US trip in late 2023 and CAR 1H24 result, we are increasingly confident in the earnings momentum (both locally & globally) – forecasting +14% EPS CAGR across FY23-26E. Although shares have performed strongly, we note: (1) On a rel. PER basis CAR trades at a discount to AU classified peers (-28% to -5%); and (2) Its abs. PER (34X) is well below prior highs (37X in Nov-20, 38X in Jul-21) despite more diversified earnings and larger TAM.
Goldman has a buy rating and $41.40 price target on its shares.
Coles Group Ltd (ASX: COL)
The team at Morgans thinks that this supermarket giant could be a great option for investors looking for blue chip ASX 200 shares to buy.
Its analysts think that concerns over supermarket regulatory scrutiny are unwarranted and that investors should be snapping up Coles' shares while they can. The broker said:
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.
Morgans has an add rating and $18.95 price target on its shares. It also expects 3.7%+ dividend yields in the medium term.
