If you want to build a strong portfolio, then having a few blue chips in there could be a good starting point.
That’s because blue chips are typically large companies that have been operating for many years, have stable cash flows, and experienced management teams. This tends to make them lower-risk options and a good foundation for a portfolio.
But which blue chip ASX 200 shares could be buys for FY 2024? Here are two that have been rated as buys:
Goodman Group (ASX: GMG)
The first blue chip ASX 200 share to look at is Goodman Group.
It is a leading integrated commercial and industrial property company that has been growing at a solid rate over the last decade.
This growth has been underpinned by the success of its strategy of developing high-quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally.
Citi expects this strong form to continue. It said:
We see potential for GMG to generate consistent high-single to low-double digit earnings growth over the medium term driven by rental upside and longer term development projects, which will add to management and development earnings.
Citi has a buy rating and a $24.30 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another blue chip ASX 200 share to buy could be Treasury Wine.
It is the wine giant behind a number of popular brands such as Penfolds, Wolf Blass, Blossom Hill, and 19 Crimes.
Goldman Sachs thinks that Treasury Wine is a great option for investors right now. It recently said:
Our deep dive analysis suggests TWE has successfully executed the redirection of Penfolds China volumes as well as refocusing Treasury Americas on premium/luxury. TWE is now re-entering a growth phase with a 12% EPS CAGR and PEG of <2x which is attractive vs the rest of our consumer coverage.
Goldman has a buy rating and a $14.20 price target on the company’s shares.
