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BRP Downgraded to Hold, Price Target on Shares Cut to $85.00 at Stifel Canada

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Stifel Canada downgraded its rating on the shares of BRP (DOO.TO) to hold from buy and cut its price target by $7.00 to $85.00.

BRP's shares are facing a binary outcome due to the USMCA negotiations and uncertain tariff rates that could ensue, notes analyst Martin Landy.

The upside scenario involves Section 232 tariffs being removed, which could bring consensus EPS estimates back to $8.00/share for FY28. Under such a scenario, shares could possibly reach ~$100, representing a multiple of ~12.5x in-line with historical levels, Landry writes.

The downside scenario entails Section 232 tariffs staying at current levels or slightly lower, which could keep consensus EPS depressed around $4.00-5.00 for FY28. Under such a scenario, Landry believes shares of BRP could retest the $70 support levels seen in April.

"We adjust our forecasts to reflect mitigating measures implemented, which are not as high as expected. This results in a decrease of 30% in our FY27 and FY28 EPS estimates."

Price: $78.15, Change: $-2.78, Percent Change: -3.44%

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