A new month is here, so what better time to make some new additions to your ASX investment portfolio.
If you are interested in ASX 200 blue chip shares and have $2,000 to invest, then it could pay to listen to what Bell Potter is saying about the two listed below.
Here's why they blue chips could be top buys in February:
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Brickworks Ltd (ASX: BKW)
The first ASX 200 blue chip share that Bell Potter is positive on is Brickworks.
It specialises in property, investments, and the manufacture and distribution of building products for the residential and commercial markets.
Bell Potter is bullish and believes that it is positioned to benefit from interest rate cuts. The broker said:
We see BKW as a high delta exposure to interest rate cuts and by extension a stock to own as we edge closer to the cycle pivot point (Bell Potter's base case for our first cut is 1H CY25). Specifically, we see a scenario unfolding where BKW could realise double digit mark-to-market NTA growth p.a. quite comfortably in coming years through positive revals (i.e. cap rate reversal), ongoing property development and rent reversion (BKW remains ~28% underrented and 50% short-WALE), as well as continued SOL outperformance. This is a growth story we think few ASX-200 industrials can currently match.
Bell Potter has a buy rating and $32.00 price target on its shares.
CSL Ltd (ASX: CSL)
Another ASX 200 blue chip share for that $2,000 investment could be CSL. It is the biotechnology giant behind the CSL Behring, CSL Vifor, and CSL Seqirus businesses.
Bell Potter believes that the company is well-positioned to deliver on its medium term earnings growth guidance. This is expected to be driven by strong demand for immunoglobulins and margin expansion in the key CSL Behring business.
Commenting on the company, the broker said:
We expect CSL will achieve guidance of "annual double-digit earnings growth" over the mid-term driven largely by the legacy plasma business, Behring, particularly its immunoglobulin sales. While CSL's Seqirus and Vifor business units do face near-term headwinds (reduced flu market demand and generic iron competition), these two units combined only contribute less than a third of total earnings.
CSL continues to be a high quality, global operator with a multi-year gross margin recovery well underway to drive earnings expansion. The stock is currently trading at a 12m forward PE 27% and 19% below 5- and 10-year averages, respectively.
Bell Potter has a buy rating and $345.00 price target CSL's shares.
