Breville stock upgraded to Buy at UBS on global coffee machine growth

Published 17/07/2025, 09:42
Breville stock upgraded to Buy at UBS on global coffee machine growth

Investing.com - UBS upgraded Breville Group Ltd. (ASX:BRG) stock rating from Neutral to Buy, raising its price target to AUD35.50 from AUD33.10.

The upgrade comes as UBS analysis of the global coffee machines market indicates Breville could more than double its sales in the next decade, according to the investment bank’s research note.

UBS Evidence Lab data suggests continued strong growth potential in Breville’s core markets, plus expansion opportunities in new Asian markets, particularly China. The firm noted Breville has consistently gained market share in each geography it enters.

The stock has fallen approximately 20% since February 2025 due to short-term earnings risks created by US tariffs, but UBS believes the market is overlooking Breville’s long-term growth potential.

In an upside scenario, UBS projects approximately 30% higher FY35 NPAT (net profit after tax) for Breville, which could support a valuation of around AUD46 per share.

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