Breville Group acquired the Seattle-based coffee grinding company - Baratza  - for US$60m. UBS estimates the deal could be circa 3% earnings per share accretive.

The broker highlights this purchase is similar to other bolt-on acquisitions made by the group in recent years. Further M&A is seen as a medium-term source of upside for Breville Group.

UBS maintains its Buy rating with the target raised to $29.90 from $29.50.

Sector: Retailing.

Target price is $29.90.Current Price is $25.73. Difference: $4.17 - (brackets indicate current price is over target). If BRG meets the UBS target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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