2 strong blue chip ASX 200 stocks to buy after market selloff says analysts
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While recent equity market weakness has been disappointing, one bright spot is that it has dragged a number of high-quality ASX 200 stocks to attractive levels.
For example, the two ASX 200 stocks listed below were rated as buys by City and is expected to climb significantly from current levels. Here is what its analysts say:
The first Blue Chip ASX 200 share to consider is CSL. This biotherapy giant could be a great option for investors after the massive sell-off. Particularly given that Citi believes a number of potential positive catalysts looming on the horizon could support a rally in the stock price.
The broker commented: “Over the next six months, we expect the market to focus on strong underlying demand from the plasma market and the conclusion of the Vifor deal, both of which should result in a rise in the share price.
Citi currently has a buy rating and price target of $335.00 on the company’s stock. Based on CSL’s latest stock price of $267.72, this suggests 25% upside potential for investors.
Goodman Group is another ASX 200 stock that could be a buy after the market sell-off. It is a leading integrated commercial and industrial real estate company with a portfolio of high quality properties.
Citi is a big fan of the company and expects double-digit earnings growth over the next few years thanks to strong demand for its properties. In light of this, the broker is likely to see the recent weakness in Goodman’s stock price as an opportunity to buy this quality company at a steep discount from recent levels.
The broker said: “We continue to view guidance as conservative, with our EPS estimates increasing 5% in FY22&c. 6% afterwards. We now expect c. EPS growth of 23% in FY22 and approx. 19% CAGR EPS from FY21-FY24. Our TP increases by 5% on higher asset values and higher income. GMG remains OUR first choice in the industry.
Citi has a buy rating and raises its price target to $29.50 on its shares. Based on Goodman’s current stock price of $20.67, this implies almost 43% upside potential for investors.