Macquarie notes Breville Group’s US product revenue results are not indicative of demand, with inventory levels depleted as a result of the LA Port congestion. Product revenue growth of 17.1% for the region compared to 39.4% growth in Europe and 22% in Asia Pacific.
Elsewhere, Australian kitchen appliance spending is in-line with the previous comparable period and remains elevated compared to pre-pandemic levels, representing around 1% of spending in the second half to date.
The Outperform rating and target price of $34.80 are retained.
Sector: Retailing.
Target price is $34.80.Current Price is $26.59. Difference: $8.21 – (brackets indicate current price is over target). If BRG meets the Macquarie target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
