Both sales and earnings for Breville Group’s 1H were ahead of Credit Suisse’s estimates and minor changes are made to forecasts. Higher reinvestment in the business was considered to largely offset revenue outperformance.
On a constant currency basis, sales increased by double digits across all businesses. The broker sees material medium-term growth opportunities. The target price eases to $28.38 from $29.86. Neutral.
Sector: Retailing.
Target price is $28.38.Current Price is $30.44. Difference: ($2.06) – (brackets indicate current price is over target). If BRG meets the Credit Suisse target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
