Breville Group Ltd (ASX: BRG) shares could be a great long-term option for investors.
That's the view of analysts at Goldman Sachs, which believe the ASX 300 share has a "unique positioning in global coffee premiumisation trend."
It is for this reason that the broker upgraded Breville's shares to a buy rating with an improved price target of $24.50 yesterday. This implies a potential upside of almost 7% for investors over the next 12 months from current levels.
This total potential return increases beyond 8% if you include the dividends Goldman is forecasting in FY 2024.
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What did the broker say about this ASX 300 share?
Goldman has been running channel checks and was pleased with what it saw. It notes that its "checks provide higher confidence on resilient US demand, ~50% of sales mix."
But while the near-term outlook appears positive, that's not the main reason that the broker is bullish on Breville.
Its bullish view is largely based on its belief that this ASX 300 share can grow at a solid rate long into the future. Goldman explains:
We see BRG as having a three-pronged growth strategy: 1) building on secular growth of the portioned and roast & ground (R&G) coffee market and achieving market share gains; 2) new market entry; and 3) options – ecosystem revenue streams. As a catalyst we would look for commentary that affirms the secular growth of the coffee-at-home market and updates to the new market entry progress for continued scaling of sales. BRG is trading at a fair valuation relative to historical multiples. We are Buy rated on the stock.
All in all, this could make Breville an ASX 300 share to consider buying today. Particularly if there's a pullback during today's expected market weakness.
