These ASX 200 blue chip shares could generate strong returns: brokers

Investors that are looking for options to boost their portfolio might want to check out the ASX 200 blue-chip shares listed below.

Analysts have named both as buys and have suggested that big returns could be on offer with their shares over the next 12 months. Here’s what they are saying about them:

CSL Limited (ASX: CSL)

The team at Morgans believes that this ASX 200 biotherapeutics giant’s shares are a buy.

Its analysts describe CSL as a key portfolio holding and see a lot of value in its shares at current levels. The broker explains:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.

Morgans currently has an add rating and a $323 price target on its shares. This suggests a potential upside of 21% for investors over the next 12 months.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 blue chip share that could be a buy is Qantas. It is of course the flag carrier airline of Australia and the owner of the Qantas, QantasLink, and Jetstar brands. It also owns the Frequent Flyer loyalty program and the Qantas Freight business.

The team at Goldman Sachs remains very positive on the company. Its analysts highlight the airline’s successful post-pandemic transformation and very attractive valuation. The broker explains:

QAN’s current market capitalisation and enterprise value are 6% above and 8% below pre-COVID levels. As such, we believe QAN is not priced for a generic recovery, let alone prospects for improved earnings capacity. We continue to see upside associated with substantially improved MT earnings capacity and include QAN in our regional Conviction List.

Goldman has a conviction buy rating and a $8.50 price target on its shares. This implies a potential upside of almost 30% for investors.