The recent market selloff has been disappointing but the silver lining to this dark cloud is that it has created a buying opportunities for long-term investors.
After all, history shows that quality ASX 200 stocks tend to recover and deliver strong returns over time.
With that in mind, here are three blue chip ASX 200 stocks that analysts have tipped to rise strongly from current levels. They are as follows:
CSL Ltd (ASX: CSL)
CSL is arguably one of the highest-quality companies on the Australian share market. It is a biotechnology giant with a global leadership position in plasma therapies, vaccines, and rare disease treatments.
Its share price has come under pressure recently due to concerns over slower-than-expected margin recovery, but many analysts believe this weakness is temporary.
For example, both Bell Potter and Goldman Sachs are positive on the company and believe it is emerging from a difficult period as strong as ever. In fact, both brokers believe that the blue chip ASX 200 stock is positioned for strong earnings growth over the coming years.
Despite this, the company's shares are trading at a forward price-to-earnings (P/E) ratio of ~23x, which is below its 10-year average of ~31x.
Bell Potter currently has a buy rating and $335.00 price target on its shares. This suggests that upside of 35% is possible from current levels.
Cochlear Ltd (ASX: COH)
Another top ASX 200 stock that has been caught up in the market weakness is Cochlear.
This could be a buying opportunity given that the hearing implant leader is well-positioned to benefit from ageing populations and increasing awareness of hearing loss solutions.
The team at Citi certainly believes that this is the case. The broker recently upgraded Cochlear's shares to a buy rating with a $300.00 price target. This implies potential upside of approximately 12% for investors over the next 12 months.
Qantas Airways Ltd (ASX: QAN)
Finally, Qantas is another ASX 200 stock that has pulled back meaningfully from recent highs.
However, despite the near-term turbulence, Qantas shares are being tipped as a buy by analysts at Goldman Sachs.
The broker highlights that unlike its US peers, which have recently released disappointing updates, Qantas remains the dominant player in the Australian airline industry and continues to benefit from strong demand for both domestic and international travel.
In light of this, its structurally stronger earnings, and its fleet renewal, the broker believes now is a good time to invest.
Earlier this week, it reiterated its buy rating and $11.80 price target on its shares. This suggests that upside of 29% is possible for investors buying at current levels.
