If you are on the hunt for new additions to your self-managed super fund (SMSF), then it could pay to listen to what analysts at Bell Potter are saying about the shares in this article.
The broker has named these ASX 200 blue chip shares as top buys and is predicting that they could rise over 20% from current levels. Here's what you need to know about them:
The first ASX 200 blue chip share to consider buying is CSL. It is one of the world's leading biotechnology companies with a specialty in plasma therapies, vaccines, and kidney disease treatments.
It has been a tough few years for the company and its shareholders, but the broker believes that the tide is turning now. It feels this could make it an opportune time for investors to snap up shares. It said:
CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~23x, representing a discount to its 10-year average of ~31x. Furthermore, the company will continue to deleverage the balance sheet over the next few years. Given the company's proven quality and growth prospects, we believe significant upside remains.
Bell Potter has a buy rating and $335.00 price target on its shares. This suggests that its shares could rise almost 30% between now and this time next year.
Another ASX 200 blue chip share that could be a top buy for an SMSF is James Hardie.
Bell Potter thinks the building products company could be a big winner from interest rate cuts and the shift to fibre cement cladding in the United States. It explains:
In our view, James Hardie is poised for continued earnings expansion, driven by the structural shift towards fibre cement in the US. Households in the US continue to shift to fibre cement cladding from vinyl/timber, providing a multiyear runway for JHX's revenue and profit growth. With a strong market position, premium brand, and pricing power, JHX is poised to capitalise on structural growth in the fibre cement market and cyclical tailwinds from potential rate cuts.
Bell Potter has a buy rating and $63.00 price target on its shares. This implies potential upside of approximately 23% for investors over the next 12 months.
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