The recent market selloff has left many high-quality ASX 200 blue chip shares trading at more attractive levels.
For savvy investors, this presents a compelling opportunity to pick up shares in some of Australia's most dominant businesses at a relative discount.
If you're looking to add some blue chip strength to your portfolio, then the three ASX 200 shares below could be worth considering. That's because analysts are bullish on their long-term prospects and see significant upside potential. Here's what they are recommending:
Brambles Ltd (ASX: BXB)
Brambles is a global leader in supply chain logistics, managing the world's largest pool of reusable pallets, crates, and containers. Its extensive network helps businesses move goods efficiently while reducing waste and environmental impact.
According to analysts at Ord Minnett, Brambles is well-positioned for long-term growth thanks to its Serialisation Plus initiative, which aims to optimise its operations and drive efficiency gains. Given the essential nature of its services and its dominant market position, Brambles has strong pricing power and resilient revenue streams.
Ord Minnett currently has a buy rating on Brambles with a price target of $23.80.
James Hardie Industries plc (ASX: JHX)
Another ASX 200 blue chip that could be a great buy after the recent market dip is James Hardie. The company is a global leader in fibre cement building materials, with a commanding 90% share of the US market.
Bell Potter believes James Hardie is well-positioned for long-term earnings growth, driven by the ongoing structural shift towards fibre cement in the US housing market. More households are choosing fibre cement cladding over traditional vinyl and timber, providing a multi-year tailwind for James Hardie's revenue and profitability.
In addition, the potential for interest rate cuts in the US could further boost housing demand, boosting the company's growth prospects. It is also worth highlighting that thanks to its pricing power and premium brand, the company boasts one of the highest return-on-equity (ROE) levels in the market at around 30%.
Bell Potter currently has a buy rating on James Hardie and a price target of $63.00.
REA Group Ltd (ASX: REA)
REA Group is the dominant force in Australia's online real estate advertising market, operating realestate.com.au, the country's leading property listings website. Over the past decade, the ASX 200 blue chip share has consistently grown revenue and profits thanks to its market leadership, pricing power, and expanding service offerings.
UBS sees REA Group as a high-quality compounder, with its growth set to continue long into the future. And as housing market conditions improve, particularly with potential interest rate cuts, REA Group stands to benefit significantly.
UBS has a buy rating on the company's shares with a price target of $294.00.
