Breville Group's first half revenue and earnings (EBIT) beat Morgans forecasts by around 12%, with year-on-year revenue, EBIT and profit (NPAT) increasing by 29%, 30% and 25%, respectively.

The company increased FY21 earnings guidance that implies to the broker only around 3% EBIT growth in the second half.

Despite flagging healthy revenue growth, management cited increased investment in medium-term growth projects, which is expected to bolster FY22/23 earnings, explains the analyst.

Morgans continues to see significant upside from the rollout to Europe, Middle East and Asia over time, bolstered by a strong new product pipeline, existing market growth and industry tailwinds.

Add ratuing and target increased to $33.90 from $29.18.

Sector: Retailing.

Target price is $33.90.Current Price is $31.35. Difference: $2.55 - (brackets indicate current price is over target). If BRG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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