Broker names 2 blue chip ASX 200 stocks to buy this month
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If you’re looking to bolster your portfolio with new, blue-chip ASX 200 stocks, you might want to consider the two listed below.
Both were recently named buyers by the team at Morgans. Here is what the broker has to say about these ASX 200 stocks:
The first Blue Chip ASX 200 stock that Morgans rates highly is South32. It is a mining giant exposed to a range of commodities such as aluminum and copper. The broker is pleased with how South32 has transformed its portfolio and strengthened its ESG credentials. He commented:
S32 transformed its portfolio by divesting South African thermal coal and acquiring a stake in Chilean copper, significantly improving the quality of the group’s earnings, as well as S32’s risk and ESG profile. Unlike its peers among ASX-listed large-cap miners, S32 has no exposure to iron ore. Instead, offer a highly diversified portfolio of base metals and metallurgical coal (most of these metals enjoying strong price strength). We see attractive long-term value potential in S32 thanks to its growth portfolio’s de-risking, potential for further portfolio shifts and an earnings-linked dividend policy.
Morgans has an added rating and a price target of $6.10 on shares of South32. This implies a potential upside of 63% from South32’s current stock price of $3.73.
Treasury Wine Estates (ASX: TWE)
Another top ASX 200 stock that Morgans rates highly is Treasury Wine. Morgans believes the wine giant’s shares are highly valued relative to its peers and foresees strong growth for the company.
TWE owns some much-loved iconic wine brands, the jewel in the crown being Penfolds. We attach great importance to its management team. The foundations are now in place for TWE to experience strong earnings growth from 2H22 over the next few years. Trading at a significant discount to our valuation and other luxury brand owners, TWE is a key pick for us.
Morgans has an added rating and a price target of $13.93 on the company’s stock. Based on the current Treasury Wine stock price of $11.43, this implies 22% upside potential for investors.