When you are trying to build a strong investment portfolio, having a few blue chips in there can be a good thing.
That's because these types of companies usually have strong business models, long track records of growth, and talented management teams. This means they can be used by investors to create a firm foundation to build out from.
But which ASX 200 blue chip shares could be top options in September? Here are three that are rated as buys by analysts:
BHP Group Ltd (ASX: BHP)
Analysts at Morgans rate BHP highly and are tipping its shares as a buy. This is due to its sector-leading margins and attractive valuation and dividend yield. It commented:
Another strong result from BHP, posting an FY24 EBITDA margin of 54%, close to its decade-average of 55% (10 percentage points above its next closest peer). Strong opex performance, with earnings coming in slightly ahead with a final dividend of US74 cents, for an annualised dividend yield of 5.6% fully franked. We maintain our ADD rating.
Morgans has an add rating and $48.30 price target on the miner's shares.
Flight Centre Travel Group Ltd (ASX: FLT)
Morgans also thinks that Flight Centre could be an ASX 200 blue chip share to buy now. It was pleased with its performance in FY 2024 and believes it can build on this in the future. This is because it feels that its "margin improvement will underpin strong growth." The broker adds:
FLT's FY24 result was in line with its recent update. The highlights were the increase in its revenue margin to 11.4% vs 10.4% in FY23, the 2H24 NPBT margin of 1.7% and strong operating cashflow up 170% on the pcp. FLT said that its outlook is positive however in line with usual practice, FY25 guidance won't be provided until the AGM in November. We maintain our ADD rating.
Its analysts have an add rating and $25.35 price target on the travel agent's shares.
Nextdc Ltd (ASX: NXT)
Over at Goldman Sachs, its analysts think that data centre operator NextDC could be an ASX 200 blue chip share to buy. The broker feels that its shares are undervalued at current levels and deserve to trade on higher multiples. It said:
We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.
Goldman has a buy rating and $18.50 price target on its shares.
