Australia's Breville to face tariff headwinds, says Morgan Stanley

Shares of Breville Group BRG.AX up 2.2% at A$29.63 on the day

Morgan Stanley says near-term earnings risk is elevated for kitchen appliance maker as U.S. tariffs have made it more difficult to export co's products to the U.S.

Adds that the outlook for the U.S. consumer is increasingly uncertain as tariffs act as a tax on consumption

However, once tariff uncertainties are resolved and production is diversified, we think co is well positioned to resume its growth trajectory - MS

Brokerage trims PT to A$36.5 from A$40, keeps "overweight" tag

Also cuts EPS forecast by 9% and 6% for fiscal years 2026 and 2027, respectively

Stock down 16.5% YTD, including current session's moves