Why brokers say these ASX 200 blue chip shares are strong buys

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If you’re looking for ASX 200 blue-chip shares to strengthen your portfolio, then you may want to check out what analysts are saying about the ones listed below.

These blue chips are highly rated by analysts and are tipped to generate big returns over the next 12 months. Here’s what they are saying about them:

Coles Group Ltd (ASX: COL)

Analysts at Bell Potter think that Coles could be an ASX 200 blue chip share to buy right now.

The broker believes the company is well-positioned thanks to the benefits of immigration and its supply chain improvements. The broker said:

Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off. In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

Bell Potter has a buy rating and $19.00 price target on Coles’ shares. This implies potential upside of 16% for investors.

CSL Limited (ASX: CSL)

Another ASX 200 blue chip share that could be a buy is CSL. It is the biotechnology giant behind the CSL Behring plasma therapies business.

Morgans is very positive about the company and feels that recent weakness has created a buying opportunity for investors. The broker said:

While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.

Morgans has an add rating and $315.40 price target on its shares. This suggests potential upside of 14.5% over the next 12 months.

Treasury Wine Estates Ltd (ASX: TWE)

A final ASX 200 blue chip share could be a buy is Treasury Wine. It is the wine giant behind brands including Penfolds, Wolf Blass, Blossom Hill, and 19 Crimes.

Morgans is also feeling very positive about this company and sees a lot of value in its shares. Particularly given its recent acquisition in the United States. The broker said:

The acquisition is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.

Morgans has an add rating and $13.00 price target on its shares. This implies potential upside of 9% for investors before dividends.

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Motley Fool contributor James Mickleboro has positions in CSL and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended CSL and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.