Experts say investors should buy these blue chip ASX stocks
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If you are looking for blue chip stocks to buy, then you might want to consider the two listed below that brokers are bullish on.
Here’s what you need to know about these blue chips:
The first blue-chip ASX stock for investors to consider is Cochlear. It is one of the world’s leading hearing solutions companies.
Goldman Sachs is positive on the company, especially given its improving outlook. In fact, the broker suspects that Cochlear could surpass its guidance in fiscal 2022.
We believe that the steady declines in [COVID] 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).
The broker currently has a buy rating and price target of $237.00 on Cochlear shares. Based on the current Cochlear stock price of $195.16, this implies 21% upside potential for investors.
Domino’s Pizza Enterprises Ltd. (ASX: DMP)
Another blue-chip ASX stock that brokers say investors should buy is pizza chain operator Domino’s.
Morgans analysts are particularly bullish on the company due to its bold store rollout plan. This sees Domino’s aiming to increase its store network to 6,650 stores by 2033, more than double its current network.
Morgans also likes the company because of his defensive qualities in tough times. However, he admits the short term could be difficult. He explained:
Demand for DMP’s product is expected to remain resilient in times of inflation and slowing economic growth. Take-out food has been one of the most resilient consumer spending categories during periods of rising inflation. DMP’s growth engine is the deployment of new stores.
While near-term store rollout may be slower than DMP would like, the medium-term opportunity is by no means diminished, as evidenced by today’s reiteration of the 2033 outlook. DMP has developed a solid platform for inorganic expansion.
The broker has an added rating and a price target of $93.00 on its shares. Based on Domino’s current stock price of $66.15, this suggests 40% upside potential for investors.