Breville’s result was in line with the broker. Management expects FY earnings growth to be slightly higher than current market consensus of 11%, leading the broker to upgrade to 12.1%.
The upgrade is supported by stronger Global Product growth, stable Distribution, new product development, geographic expansion and the cycling of weaker growth in the same period last year. The broker expects Breville to build value over the medium term but implies the stock has run a bit too far ahead of itself. Neutral retained.
Target rises to $14.77 from $13.18.
Target price is $13.18.Current Price is $14.19. Difference: ($1.01) – (brackets indicate current price is over target). If BRG meets the Macquarie target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).