Breville Group's FY20 result was in-line with Morgans forecast. However, the broker notes some sales slippage in May/June, bad debt provisioning and the add-back of one-off operating expense savings resulted in a miss versus the market's lofty expectations.

The company declared a final dividend of 20.5 cents. The company also announced plans to expand geographically and Morgans estimates Italy and Portugal represent an approximate $60m yearly revenue opportunity over time, while Mexico may be a $30m opportunity.

No trading update was provided by the company.

The analyst makes around 2% positive changes to EPS forecasts in FY21-23 and notes the broker's long-term view of the growth prospects for the business remains unchanged.

Add rating is maintained. The target price is increased to $27.46 from $27.

Sector: Retailing.

Target price is $27.46.Current Price is $25.00. Difference: $2.46 - (brackets indicate current price is over target). If BRG meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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