Analysts name 2 blue-chip ASX 200 stocks to buy now
Image source: Getty Images
Luckily for investors, the Australian equity market is home to a good number of high-quality, blue-chip stocks to choose from.
Two top-notch ASX 200 stocks that might be worth considering additions to your portfolio right now are listed below. Here’s what you need to know about them:
The first top-notch ASX 200 stock to look at is BHP. The Big Australian is one of the largest mining operators in the world and has a diverse portfolio of world-class, low-cost operations across the globe. With favorable prices for most of the raw materials it produces, BHP appears well positioned to generate significant free cash flow again in fiscal 2022. This despite the recent decline in iron ore prices. This could make the recent weakness in the BHP share price a buying opportunity for investors.
The Macquarie team certainly believe that is the case. The broker currently has an outperformance rating and a price target of $ 52.00 on the miner’s stock. Macquarie also expects BHP’s free cash flow generation to be strong enough to support a 10% dividend yield in FY 2022 at the current share price.
National Australia Bank Ltd (ASX: NAB)
NAB is another top notch stock from the ASX 200 that is well rated. While the banking sector has fallen out of favor with investors following the recent round of earnings releases, many analysts remain positive on the NAB. This is due to the progress of its cost management initiatives and its strong position in investment / commercial banking.
Goldman Sachs is one of the more bullish brokers. He believes that NAB’s cost management initiatives (which he says are still ahead of his peers) have freed up capital spending to be more customer experience oriented. Additionally, the broker likes NAB because of its position as the largest merchant bank. This is due to Goldman’s belief that retail-oriented banks will struggle to face aggressive competition for mortgages.
Overall, NAB is the broker’s top pick among the Big Four banks and has a conviction buy rating and a price target of $ 31.15 on its shares.