Market Chatter: Breville's Stock Requires Upbeat Conference Call for Further Gains, Citi Says

MT Newswires Live
02-11

Breville Group (ASX:BRG) first-half result shows strong execution and sustained category tailwinds, but an upbeat conference call is likely needed for the stock to see further gains, according to a Tuesday report by the Australian, citing investment and financial services firm Citi.

The company reported Tuesday that its earnings per diluted share in the fiscal first half rose to AU$0.669, from AU$0.582 per diluted share a year earlier.

Citi analyst Sam Teeger pointed out that Breville's full fiscal year guidance of earnings before interest and taxes growth of 5% to 10% "may be slightly underwhelming or conservative," as Visible Alpha estimates suggest 12% growth, factoring in a stronger first half.

However, Breville expects strong fiscal second-half momentum, driven by new products and expansion into China and the Middle East, Teeger said.

Breville's increased US inventory to offset potential tariffs should safeguard fiscal second-half margins, Teeger added.

Shares of the company fell 2% at market close.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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