Are you on the hunt for some post-results season buys? If you are, then Ord Minnett has your back!
Its analysts have named a number of ASX 200 shares as buys following earnings season. Here are two blue chips that it is bullish on:
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Brambles Ltd (ASX: BXB)
The first ASX 200 share that could be a buy according to Ord Minnett supply chain solutions company Brambles.
The broker was pleased with its performance in FY 2025, highlighting that its EBIT was in line with expectations. This was despite a decline in like-for-like (LFL) volumes that dragged on its revenue.
Looking ahead, the broker believes that Brambles is well-placed for growth thanks to strong operating leverage and a return to LFL growth. It said:
Despite the fall in LFL volumes, growth in new business picked up to 3% in the June quarter as customers were won over by the advantages of the pallet-pooling model. We expect strong operating leverage in the business will allow Brambles to generate EBIT growth in the double digits even if sales only rebound to the 3–5% growth rate in company guidance.
Gearing of 1.1x is outside the lower bound of Brambles' 1.5–2.0 target range, which implies balance sheet headroom of circa US$2.5 billion, which could support further capital management past the just announced share buyback. We raised our target price on Brambles to $29.40 from $24.90 post the result and reiterate our Buy recommendation.
As mentioned above, Ord Minnett has a buy rating and $29.40 price target on the company's shares. Based on its current share price, this suggests that upside of 11% is possible between now and this time next year.
Reece Ltd (ASX: REH)
This plumbing products company could be a blue chip ASX 200 share to buy according to the broker.
Although its performance in FY 2025 was disappointing, Ord Minnett appears to believe this is the cyclical low. As a result, the broker feels that investors should be taking advantage of recent share price weakness and load up. It commented:
Despite improved lead indicators in Australasia, Reece expects a slow housing market recovery in that market. In the US, improved housing markets will require significantly lower interest rates to drive activity. With improvement in end markets yet to materialise, we downgrade FY26/FY27 earnings by 16% and 19%. Overall, the near-term outlook for Reece remains challenging.
Despite this Reece continues to invest through the cycle to pursue its growth ambitions. We maintain our BUY recommendation and expect earnings and returns to improve from a cyclical low.
Ord Minnett has a buy rating and $14.50 price target on its shares. Based on its current share price, this implies potential upside of almost 40% for investors over the next 12 months.
