Having a few quality blue chip ASX 200 shares in a portfolio is never a bad idea.
But which blue chips could be good additions to an investment portfolio right now?
Let's look at two that analysts are feeling bullish on and why they could be top picks this month:
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REA Group Ltd (ASX: REA)
The first ASX 200 blue chip share to consider buying is REA Group.
It is the company behind realestate.com.au, which is a powerhouse in online property listings. It dominates digital real estate in Australia and continues to grow its presence in Asia through stakes in several fast-growing international portals.
REA Group's business model is capital-light and resilient. Even in weaker property markets, its premium listings, advertising packages, and data services ensure steady, recurring revenue streams. And with falling interest rates expected to boost listings, REA Group is well-placed to benefit.
Goldman Sachs is a fan of the company. It recently commented:
We believe REA Group, a leading real estate classified business with strong market positions across Australia, Asia and the United States, has one of the best risk/reward profiles in our domestic media coverage. In particular, we are positive on the pricing power of the real estate classified vertical, given that we believe budgets will rise (at the expense of commissions), and within existing budgets, REA, as a leading player in the vertical, under-monetises its lead generation.
The broker has a buy rating and $270.00 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX 200 blue chip share that could be a top buy according to analysts is Treasury Wine Estates.
It is one of the world's largest wine producers, with a portfolio of luxury, premium, and commercial brands. Some of its most recognisable labels include Penfolds, Wolf Blass, 19 Crimes, Lindeman's, Blossom Hill, and Squealing Pig.
Goldman believes the company's premiumisation strategy leaves it well-placed to deliver strong earnings growth in the coming years. It said:
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.
The broker has a buy rating and $12.90 price target on its shares.
