Breville share price surges as top broker reckons it’s worth $62 a share – Motley Fool Australia

The Breville Group Ltd(ASX: BRG) share price is bucking the morning sell-off even as fears of a COVID-19 resurgence is forcing investors to retreat.
Shares in the kitchen appliance maker surged 5.1% to $24.15 in morning trade when the S&P/ASX 200 Index (Index:^AXJO) fell 0.6%.
Other consumer-facing stocks are also under pressure today. The Harvey Norman Holdings Limited(ASX: HVN) share price lost 1% to $3.53 while the Wesfarmers Ltd(ASX: WES) share price shed 0.5% to $45.81 at the time of writing.
$10 billion opportunity
A very bullish report from Morgan Stanley may be what’s firing the Breville share price. The broker initiated coverage on the stock with an “overweight” recommendation as it estimates the global serviceable market for Breville stands at $10 billion.
If you are impressed with that number, Morgan Stanley reckons the stock is worth $62 a pop – although you will have to settle for a more modest 12-month price target of $28 a share in the meantime.
Why the Breville share price could surge over $60
The $62 per share valuation is for FY30, and it assumes the group can achieve a 10% compound annual growth rate (CAGR) over the next 10 years.
“This assumes that BRG can capture 33% of the total revenue opportunity, or A$3.1bn at an EBIT

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