The Breville Group Ltd (ASX: BRG) share price gained 13.9% in July, ending the month at $25.93 per share. That return smashed the gains delivered by the S&P/ASX 200 Index (ASX: XJO), which gained 0.5% in July.
The Australian electrical appliance manufacturer wasn’t spared from the COVID-19 panic selling in February and March. The Breville share price fell an agonising 58% from 13 February through its 23 March low, when it hit $10.80 per share.
Since then the Breville share price has been on a tear, up 163% since 23 March.
Year-to-date, Breville shares are also well into the green, up an impressive 70%. At its current share price of $28.40, Breville has a market cap of $3.9 billion.
What does Breville Group do?
Breville Group is a well-known Australian designer and manufacturer of a wide range of small electrical appliances, like blenders, coffee machines, juicers and mixers. The company launched in 1932 when Bill O’Brien and Harry Norville mixed their last names together and started a company making radios. After providing mine detectors for World War II, the pair turned their attention to small appliances.
Today, Breville-designed products are sold in more than 30 countries across the globe. Along with Breville, the group owns and operates other brands including Sage, Kambrook, PolyScience, and Aquaport. Since listing on the ASX in 1999, Breville shares have been included as a growth investment in many investors’ portfolios, along with providing some income to shareholders along the way in the form of dividends.
Why did the Breville share price leap higher in July?
July got off to a good start for Breville with 2 major brokers providing the tailwinds.
First, Morgans retained its add rating and $27.00 price target in a note to its clients. Morgans stated Breville appeared well-placed for growth, with an increased demand for coffee machines, its international expansion success and more people making their own meals at home as the coronavirus is keeping many restaurants around the globe shuttered.
On 14 July, this was followed by a bullish report from Morgan Stanley. Morgan Stanley placed and overweight recommendation on Breville shares, estimating its global market at $10 billion. It set a 12-month target price of $28 per share.
In intraday trading today, the Breville share price stands at $28.43.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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