The ASX 200 index is home to a large number of blue chip shares. Two that could be in the buy zone right now are listed below.
Here's what brokers are saying about these ASX 200 shares:
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BHP Group Ltd (ASX: BHP)
The first ASX 200 blue chip share for investors to look at is mining giant BHP. It owns a portfolio of world class operations across a range of commodities and geographies.
This week, the company announced that it wants to add to this portfolio with the acquisition of copper miner OZ Minerals Limited (ASX: OZL). And while this offer was swiftly rejected, it seems unlikely that the story ends here.
The team at Morgans was pleased with the news and believes it is consistent with the Big Australian's strategy. In response, the broker retained its add rating with a $48.40 price target on the miner's shares.
It commented:
If nothing else, this development should reduce any concern that BHP might have been considering a larger more transformative acquisition. There has been a consistent fear from some that history would repeat itself and BHP eventually become attracted to a +$100bn acquisition/merger at a high point in the cycle. Instead, BHP has remained on-strategy and focused.
REA Group Limited (ASX: REA)
Another ASX 200 blue chip share that is highly rated is REA Group. It is the dominant player in online real estate listings in the Australian market.
Earlier this week, the company released its full year results and revealed a 26% increase in revenue to $1.17 billion and a 25% jump in net profit to $408 million. This was underpinned by a whopping 124.1 million average monthly visits to its key realestate.com.au website.
This went down well with analysts at Goldman Sachs, which have reiterated their buy rating and $164.00 price target on its shares. It said:
Overall we thought the REA result, commentary and cash performance was positive. […] We remain Buy (on CL), with this result and positive yield outlook supporting our recent upgrade of REA.
