Macquarie rates the stock as Outperform
Macquarie notes, as expected, the company’s distribution agreement with Keurig for Canada will end at the end of June this year. While a little disappointing, the broker sees little longer term impact, with remaining earnings streams from Breville’s own brand and IP of a better quality anyway.
The broker remains a fan of the international growth prospects on offer from Breville and its brand and thus retains its Outperform recommendation and $6.00 price target.
Target price is $6.00. Current Price is $5.34. Difference: $0.66 – (brackets indicate current price is over target). If BRG meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).