The broker calls Breville’s result "pleasing", noting it reflects a successful recycling of prior strong numbers on the back of new product releases here and in North America. It appears the group benefited from a strong UK performance and the relationship with Nespresso.
Breville is now well-positioned to expand its European footprint, the broker notes. Concerns over US tariffs have abated and what impact there will be can be passed on to prices, management suggests. Target raised to $12.58 from $11.60, Neutral retained.
Target price is $12.58.Current Price is $13.10. Difference: ($0.52) – (brackets indicate current price is over target). If BRG meets the Credit Suisse target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).