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If you’re looking to bolster your portfolio with some ASX 200 blue chip stocks, you might want to look at the two listed below.
Both of these high-quality blue-chip stocks have been hammered this year, which could create a buying opportunity for long-term investors.
Here’s why analysts think these stocks are buys right now:
The Goodman Group (ASX: GMG)
The first ASX 200 blue chip stock to watch is Goodman Group. Shares of this leading integrated commercial and industrial property company have fallen more than 40% since the start of the year.
This is despite the company maintaining strong performance in FY2022 and its guidance for continued steady growth this fiscal year.
And with demand for its properties, which include warehouses, data centers, large-scale logistics facilities, and business and office parks, expected to remain strong, Goldman Sachs is advising investors to take advantage of the weakness and buy its shares. He recently commented:
We expect steady rental growth as demand for high-quality logistics space continues to outpace available supply. While the macro environment remains challenging, we believe the conservative guidance is an upside risk as the Group has historically been a “Guiding Light” ahead of initial estimates. Given GMG’s advantage in owning, developing and managing high-quality industrial assets in key replenishment markets around the world, we believe it is well-positioned to capture the growth in the rental market, which, combined with increased investment demand for industrial assets, will help contribute to AUM growth after some time.
Goldman presently has a buy rating and a $25.40 target price on the company’s stock. Based on Goodman’s last share price of $15.92, this suggests a potential upside of nearly 60%.
Another ASX 200 blue-chip stock that has been hammered is jobs giant Seek. Since the beginning of the year, its shares have also fallen by 40%.
This has caught the attention of analysts at Morgans, who believe the company is one of the best options for investors in the ASX 200 index at the moment.
Its analysts commented:
Of the classifieds players, we continue to believe that SEEK has the greatest relative growth, a view based on the steady growth in listings we have seen over the period. The tailwinds that led to higher job postings (~250k currently, +35% on PCP) and strong FY22 results seem to still be in place, ie. restrained migration, a shortage of candidates and a desire for greater employee flexibility. With businesses looking to increase headcount in the coming months and job mobility at an all-time high according to the RBA, we see these favorable working conditions driving increased reliance on SEEK products.
Morgans has an add rating and a $29.40 target price on the stock. Based on Seek’s current share price, this suggests an upside potential of nearly 50% for investors over the next 12 months.