The team at Bell Potter has been busy running the rule over a number of blue chip ASX 200 shares.
Two that were given the seal of approval by the broker and named on its Australian equities panel are listed below.
It believes these shares offer attractive risk-adjusted returns over the long term. Bell Potter notes that when making its picks, it considers the current macro-economic backdrop and investment environment. It also focuses on quality companies with proven track records, strong management teams and competitive advantages.
Two of the blue chip ASX 200 shares it rates as buys are as follows:
Image source: Getty Images
Coles Group Ltd (ASX: COL)
Supermarket giant Coles remains on its Australian equities panel again in October.
The broker believes that the company's outlook is positive due to moderating costs, higher immigrations, and the modernisation of its supply chain. 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.
Goodman Group (ASX: GMG)
Another blue chip ASX 200 share that gets the thumbs up from Bell Potter is Goodman.
It is a specialist global industrial property and digital infrastructure group that owns, develops and manages high-quality, sustainable properties that are close to consumers and provide essential infrastructure for the digital economy.
Bell Potter believes that Goodman is well-positioned to grow its earnings in the mid-single digit to low-double digits for some time to come thanks to a number of tailwinds and its winning strategy. The broker explains:
Goodman is a well-run business with good long-term growth prospects and a clearly-defined strategy. Goodman is developing in a strong global developer of datacentres which is a key beneficiary from the rising demand of artificial intelligence. This is supported by a strong portfolio and development capability in warehouses and industrial space. We see potential for GMG's earnings to continue to grow at mid-single digit to low-double digits as it captures the significant rental upside to market, as well as via ongoing development activity.
