Do you have room in your portfolio for some ASX 200 blue chip shares?
If you do, then it could pay to look at the two listed below that analysts rate as buys.
Here's what they are saying about them:
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James Hardie Industries plc (ASX: JHX)
The team at Bell Potter thinks that James Hardie could be an ASX 200 blue chip share to buy.
It is a global building materials company and the largest global manufacturer of fibre cement products.
Bell Potter rates the company very highly. This is due to the structural shift towards fibre cement in the United States, which it expects to support an earnings expansion. The broker explains:
In our view, James Hardie is poised for continued earnings expansion, driven by the structural shift towards fibre cement in the US. Households in the US continue to shift to fibre cement cladding from vinyl/timber, providing a multi- year runway for JHX's revenue and profit growth. With a strong market position, premium brand, and pricing power, JHX is poised to capitalise on structural growth in the fibre cement market and cyclical tailwinds from potential rate cuts.
Bell Potter has a buy rating and $64.00 price target on its shares. This suggests that upside of 25% is possible for investors over the next 12 months.
Treasury Wine Estates Ltd (ASX: TWE)
Over at Goldman Sachs, its analysts think that Treasury Wine Estates could be an ASX 200 blue chip share to buy.
Treasury Wine is one of the world's leading wine companies with a portfolio of popular brands such as Penfolds, Wolf Blass, Lindeman's, and 19 Crimes.
Goldman Sachs believes the company is well-placed for growth in the coming years thanks to the key Penfolds business and the reopening of the China market. It explains:
Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027;
and 2) its rank as the #1 luxury wine company in the US (most sales in luxury wine) with the recent acquisitions of Frank Family Vineyards (FFV) and DAOU which have been growth and margin accretive, combined with a stable portfolio of Premium Brands. TWE is trading modestly below the 5-year historical P/E average.
Goldman has a buy rating and $12.90 price target on its shares. This implies potential upside of 18% for investors from current levels.
