Experts are pricing these blue-chip ASX 200 stocks as buys
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The Australian equity market is home to a large number of blue-chip ASX 200 stocks. But which ones are in the buy zone right now?
Two that have just been announced as purchases are listed below. Here’s what analysts are saying:
Australia and New Zealand Banking Group Ltd (ASX: ANZ)
The first Blue Chip ASX 200 stock that analysts are positive about is ANZ Bank. It is of course one of the big four Australian banks.
It was labeled a buy by Macquarie analysts. The broker currently has an overweight rating and a $34.00 price target on the bank’s stock. This compares very favorably to the latest ANZ share price of $21.16, suggesting 60% upside potential for investors.
Macquarie thinks banks could increase their margins with customers who aren’t looking for new term deposit rates. He explained:
As competition for “hot” term deposits (TDs) intensifies, “lazy” bank customers (who don’t seek out the “special rates” offered by banks) are contributing to higher margins. We believe that “lazy” term deposits are currently one of the most profitable banking segments and should provide [approximately] 4-9bps [basis points] tailwind over the next twelve months.
Another Blue Chip ASX 200 stock that is considered a buy is hearing solutions company Cochlear.
The Goldman Sachs team is bullish and has a buy rating and price target of $237.00 on its stock. This compares to Cochlear’s latest stock price of $188.98, implying 25% upside potential for investors.
The broker believes that Cochlear is well positioned to at least meet its targets in fiscal year 2022. He explained:
While the recovery [from the pandemic] will always be mixed, we believe that steady declines in hospitalization rates in key markets, favorable backlog volumes and improving margin trajectory support a much improved picture from here. [..] As such, we believe the current FY22 targets offer the best chance in several years for COH to meet or exceed the high end of its guided range (GSe: A$297m).