Having a few blue chip ASX shares in a portfolio is a good idea, but only at the right price.
With that in mind, let's see what analysts at Morgans are saying about three of the most popular blue chip options out there.
Here's what you need to know about them:
Suncorp Group Ltd (ASX: SUN)
Morgans is feeling positive about this insurance giant. And while it has stopped short of calling it a buy, it has an accumulate rating and $23.42 price target on its shares. This implies potential upside of 14% for investors over the next 12 months. It also expects a 4.3% dividend yield in FY 2026.
Commenting on the blue chip, the broker said:
SUN's FY25 group NPAT (A$1,823m) was +4% above consensus, and +22% on the pcp. We saw this a solid result across the board, with guidance into FY26 pointing to further underlying insurance trading ratio improvement (on a like-for-like basis) We lift our SUN FY26F/FY27F cash EPS by 6%-7% reflecting higher reported insurance trading ratio forecasts (12.3%-12.4%) over the next two years, and the impacts of the new buyback. Our valuation rises to A$23.42 (previously A$22.85). With a solid enough outlook continuing into FY26, and SUN having a ~17% TSR on a 12-month view, we maintain our ACCUMULATE call.
Telstra Group Ltd (ASX: TLS)
Another ASX share that is popular with investors is telco giant Telstra. Morgans notes that its guidance for FY 2026 was softer than expected. As a result, it thinks its shares are a hold with a $4.70 price target. This is a touch lower than where it currently trades. The broker commented:
TLS's FY25 result was largely as expected and FY26 guidance was slightly below expectations. That said new guidance metrics for FY26 change the focus. Mobile traction slowed in the year, with revenue and EBITDA slightly below consensus and our forecasts. Mobile Underlying EBITDA lifted ~5% YoY. We retain our HOLD and $4.70 Price Target.
Westpac Banking Corp (ASX: WBC)
Finally, Morgans believes that this banking giant is one rating short of being a sell and has a trim rating and $30.95 price target on its shares.
While it was impressed with its quarterly update, it feels its shares are overvalued. The broker said:
WBC surprised with 3Q25 NPAT growth (ex-notable items) of 8%, which was a run-rate well in excess of previous expectations of declining earnings for 2H25F. The strength of the NIM was the key driver of the surprise, but a number of NIM drivers in the period can't necessarily be extrapolated into 2H25 performance. Material earnings upgrades. DCF-based target price lifted to $30.95/sh. While WBC remains our preferred bank, we also view it as overvalued at current prices. We recommend clients TRIM overweight positions into the price strength.
