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FINWIRES

BRP Downgraded to Hold at TD

-- BRP Inc. (DOO.TO) was downgraded to Hold from Buy at TD Securities on Wednesday.

Analyst Brian Morrison lowered his price target on shares of the Canadian recreational vehicle manufacturer to $84 from $119.

"Last night, BRP suspended its F2027 guidance as it interprets amended Section 232 tariffs on steel/aluminum/copper imports will increase its tariff exposure by >$500mm this year, or ~40% of EBITDA," Morrison said in a note to clients.

"We believe available levers to BRP will not offset a large component of this impact, and that the next data point to gain visibility on this major headwind is within a USMCA renegotiation," the analyst said.

"We dislike knee-jerk reactions to our recommendation, but pre-release our return was below our required hurdle, the magnitude of the impact is material, and visibility to the amendment changing is limited."

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