BRP (NASDAQ:DOOO) Stock Price Up 5.5% Following Analyst Upgrade

Key Points

• BRP Inc.'s stock surged 5.5% after Canaccord Genuity Group upgraded its rating from hold to buy, with shares trading at approximately $66.43.
• Several analysts have recently boosted their ratings on BRP, resulting in a consensus rating of "Moderate Buy" and a target price of $43.00.
• The company announced a quarterly dividend increase to $0.215 per share, reflecting an annualized yield of 1.3%.

BRP Inc. (NASDAQ:DOOO - Get Free Report) rose 5.5% during mid-day trading on Tuesday after UBS Group raised their price target on the stock from $35.00 to $70.00. UBS Group currently has a neutral rating on the stock. BRP traded as high as $66.49 and last traded at $66.43. Approximately 138,380 shares were traded during mid-day trading, a decline of 42% from the average daily volume of 238,712 shares. The stock had previously closed at $62.98.

Other equities analysts also recently issued reports about the stock. National Bankshares set a $105.00 price target on shares of BRP and gave the stock a "sector perform" rating in a report on Tuesday. BMO Capital Markets reaffirmed an "outperform" rating on shares of BRP in a report on Tuesday. Wall Street Zen raised shares of BRP from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 30th. Zacks Research raised shares of BRP from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Finally, Desjardins raised shares of BRP from a "hold" rating to a "buy" rating in a report on Friday, May 30th. Four investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $71.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Mackenzie Financial Corp boosted its stake in shares of BRP by 51.1% during the second quarter. Mackenzie Financial Corp now owns 2,847,424 shares of the company's stock valued at $138,302,000 after purchasing an additional 962,696 shares during the period. Turtle Creek Asset Management Inc. boosted its stake in shares of BRP by 29.0% during the fourth quarter. Turtle Creek Asset Management Inc. now owns 2,970,680 shares of the company's stock valued at $151,118,000 after purchasing an additional 668,607 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of BRP by 144.4% during the first quarter. Goldman Sachs Group Inc. now owns 723,443 shares of the company's stock valued at $24,460,000 after purchasing an additional 427,434 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of BRP by 14.4% during the first quarter. Price T Rowe Associates Inc. MD now owns 2,744,879 shares of the company's stock valued at $92,805,000 after purchasing an additional 346,114 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of BRP by 696.2% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 291,203 shares of the company's stock valued at $14,144,000 after purchasing an additional 254,627 shares during the period.

BRP Price Performance

The company has a market cap of $4.78 billion, a PE ratio of -272.92 and a beta of 1.19. The business has a 50 day moving average of $53.84 and a 200 day moving average of $44.16. The company has a debt-to-equity ratio of 5.54, a current ratio of 1.34 and a quick ratio of 0.58.

BRP (NASDAQ:DOOO - Get Free Report) last issued its quarterly earnings data on Friday, August 29th. The company reported $0.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.34. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.77 billion. BRP had a negative net margin of 0.34% and a positive return on equity of 61.26%. BRP has set its FY 2026 guidance at 3.090-3.460 EPS. As a group, research analysts predict that BRP Inc. will post 3.15 EPS for the current year.

BRP Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Tuesday, September 30th will be given a dividend of $0.215 per share. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, September 30th. This is a positive change from BRP's previous quarterly dividend of $0.16. BRP's payout ratio is presently -262.50%.

About BRP

BRP Inc, together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems.