Breville Group (BRG)
Hi gents Quick query re BRG. Clearly smashed in the lead up (and post) tariffs. Now circa $26. And right at year lows. Are they lower enough yet to contemplate? What are your thoughts, M
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Answer
Hi Matt,
Electrical consumer appliance business Breville (BRG) has been smacked well over 30% because around 90% of its goods are made in China while almost half of its revenue comes from the US, an awful combination for Trump 2.0. The company is looking to diversify its production by 2026 but it does feel a bit like the “after the horse has bolted.”
However, this remains a quality company which has simply hit a large pothole in our opinion, the stock is as expected cheap compared to recent years and we believe it is an opportune time to consider BRG but in the short-term the share price will swing around on news around the escalating US-China trade war.
