The Breville Group Ltd (ASX: BRG) share price has defied the market weakness today and is pushing higher.
In afternoon trade, the appliance manufacturer's shares are up 2% to $18.40.
This compares favourably to the ASX 200 and its 0.75% decline.
Why is the Breville share price rising?
The catalyst for the rise in the Breville share price on Friday has been the release of an update on an acquisition and the company's guidance for FY 2022.
According to the release, Breville's acquisition of Italian-based prosumer coffee group LELIT is progressing well. It was expected to complete in early July following an internal reorganisation.
Breville has now confirmed that the reorganisation is going to plan and the transaction is expected to complete on July 1 2022. This means the business will be part of Breville in time for the start of FY 2023.
As for FY 2022, Breville revealed that it expects to release its full-year results on 23 August. And, pleasingly, it has reiterated that its FY 2022 earnings before interest and tax (EBIT) should be in line with its previous guidance and the market consensus.
Breville is expecting to report EBIT of ~$156 million for the 12 months. This will be a year on year increase of 14.4% from $136.4 million in FY 2021. Which is all the more impressive when you consider that FY 2021's EBIT was up 40% on FY 2020's numbers.
Despite this strong form, the Breville share price is still significantly underperforming the market in 2022. Since the start of the year, the company's shares are down a disappointing 43%.
Analysts at Macquarie are likely to see this as a buying opportunity. This morning the broker retained its outperform rating with a $23.80 price target.
