2 ASX blue chip shares tipped as buys for 2021

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Are you looking to strengthen your portfolio with the addition of a couple of quality blue chip shares?

Then you’re in luck, listed below are two top blue chips that have been tipped as buys. Here’s what you need to know:

Cochlear Limited (ASX: COH)

The first blue chip share to look at is Cochlear. It is a global leader in the design, manufacture, and sale of implantable hearing devices. Cochlear has been a strong performer over the last decade thanks to the increasing demand for its products due to the ageing populations tailwind and of course its industry leading product range.

The latter has been supported by its high level of investment in research and development (R&D). For example, in FY 2020 Cochlear invested $185 million or ~14% of its revenue on R&D activities. But it isn’t stopping there. Management expects this to increase to between $190 million and $195 million in FY 2021 as it focuses on connected devices.

Analysts at Macquarie are positive on the company. The broker has an outperform rating and $241.00 price target on Cochlear’s shares at present. Macquarie notes that its industry research shows that Cochlear has been winning market share in the United States and its products were the most highly rated according to a survey of audiologists.

Ramsay Health Care Limited (ASX: RHC)

Another blue chip to look at is Ramsay Health Care. Trading conditions have been challenging for Ramsay Health Care in 2020 because of the pandemic. However, due to its world class network of private hospitals, favourable industry tailwinds, and growth through acquisition strategy, management remains positive on its long term growth prospects.

For example, following the release of its first quarter update, Ramsay’s Managing Director and CEO, Craig McNally, commented: “Ramsay is well positioned to capitalise on the shifting industry dynamics in each of our key markets. Following the recent equity raising, the Company has a strong balance sheet to support new opportunities as they arise.”

Analysts at Macquarie are also positive on Ramsay. They have an outperform rating and $73.65 price target on its shares. The broker agrees with management and remains positive on the future and believes Ramsay is well positioned for long term growth.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX blue chip shares tipped as buys for 2021 appeared first on The Motley Fool Australia.

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