BRG - Morgan Stanley rates the stock as Initiation of coverage with Overweight
PUBLISHED
2020-07-14
Content
Breville Group is a premium small kitchen appliance brand based in Australia and operates in the cooking, food preparation and beverage categories. The group’s markets are in ANZ, North America and EU.
The group has a track record of expansion in markets (North America and EU), notes Morgan Stanley, and is highly focused on R&D. Another point highlighted is the group’s scalable business model which can support rapid growth.
Morgan Stanley estimates the group’s serviceable market to be $10bn per annum.
An update by the company showed minimal covid-19 impact to sales and the broker feels the kitchen appliance segment could benefit from more people working from home.
Morgan Stanley highlights the group’s global expansion gives it a long runway for growth and initiates coverage on Breville Group with an Overweight rating and a target price of $28. Industry: In-line.
Sector: Retailing.
Target price is $28.00.Current Price is $24.00. Difference: $4.00 - (brackets indicate current price is over target). If BRG meets the Morgan Stanley target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).