Stifel Canada is maintaining its buy rating and $116.00 price target on the shares of BRP (DOO.TO, DOO) despite the company suspending its annual guidance due to changes to the U.S. tariff environment, as "tariffs have proven to be volatile".
In a statement, BRP management calculated the impact of the new tariffs could exceed $500 million annually, without any mitigating measures implemented. This represents about 60% of the company's total FY26 EBITDA, writes analyst Martin Landry.
The impact should start in the second quarter as most of the products sold in the fiscal first quarter were exported into the United States under a lower tariffs structure, Landry adds.
"We are not changing our forecast at this point as tariffs have proven to be volatile. The magnitude of the impact is mind-blowing, but it is likely the worst case scenario."
Price: $68.29, Change: $-39.75, Percent Change: -36.79%