Credit Suisse remains positive about the long-term growth prospects but the share price has appreciated over 160% since March. Therefore, this is considered a good opportunity to take a breather and the broker downgrades to Neutral from Outperform.
The target is raised to $26.81 from $20.27. Market trends provide confidence with respect to the performance in May and June and forecasts are upgraded accordingly.
Medium-term forecasts are also upgraded based on the coffee category continuing to drive overall growth in the small home appliances industry. Breville will report its results on August 13.
Sector: Retailing.
Target price is $26.81.Current Price is $28.59. Difference: ($1.78) – (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).
