Breville Group has acquired Italian-based LELIT Group, the designer and manufacturer of high-end Italian espresso machines and grinders for -$169m. Half of the consideration is cash, the other half shares.
The analyst forecasts a 5% accretion to sales, 4% to profit and 2% to EPS in FY23. After also allowing for a disadvantageous exchange rate, the broker retains its Buy rating and $34 target.
Sector: Retailing.
Target price is $34.00.Current Price is $27.13. Difference: $6.87 – (brackets indicate current price is over target). If BRG meets the UBS target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
