BRP (NASDAQ:DOOO) Stock Rating Upgraded by Zacks Research

Key Points

• Analysts at Zacks Research upgraded BRP's rating from "hold" to a "strong-buy," indicating increased investor confidence in the stock.
• BRP recently reported earnings of $0.67 per share, significantly exceeding analysts' expectations, despite revenues falling short of estimates at $1.36 billion.
• Several institutional investors, including Turtle Creek Asset Management and Mackenzie Financial Corp, have notably increased their holdings in BRP, suggesting growing institutional support for the company.

Zacks Research upgraded shares of BRP (NASDAQ:DOOO - Free Report) from a hold rating to a strong-buy rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other research analysts also recently commented on DOOO. Canaccord Genuity Group raised shares of BRP from a "hold" rating to a "buy" rating in a research note on Tuesday, September 2nd. Cibc World Mkts raised shares of BRP from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 1st. Desjardins upgraded shares of BRP from a "hold" rating to a "buy" rating in a research note on Friday, May 30th. Stifel Canada upgraded shares of BRP from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 29th. Finally, Scotiabank reiterated a "sector perform" rating on shares of BRP in a research note on Tuesday, September 2nd. Four investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $71.50.

BRP Price Performance

BRP stock traded up $2.86 during mid-day trading on Tuesday, hitting $68.36. 351,178 shares of the company traded hands, compared to its average volume of 246,050. The stock has a market cap of $4.99 billion, a price-to-earnings ratio of -284.83 and a beta of 1.19. The company has a debt-to-equity ratio of 5.54, a quick ratio of 0.55 and a current ratio of 1.34. BRP has a one year low of $31.78 and a one year high of $68.42. The stock has a fifty day moving average price of $53.84 and a 200-day moving average price of $44.18.

BRP (NASDAQ:DOOO - Get Free Report) last announced its quarterly earnings data on Friday, August 29th. The company reported $0.67 earnings per share for the quarter, topping analysts' consensus estimates of $0.33 by $0.34. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates 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. On average, equities analysts predict that BRP will post 3.15 earnings per share for the current fiscal year.

BRP Increases Dividend

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

Institutional Trading of BRP

Institutional investors and hedge funds have recently made changes to their positions in the business. Charles Schwab Investment Management Inc. increased its position in shares of BRP by 10.1% in the first quarter. Charles Schwab Investment Management Inc. now owns 109,158 shares of the company's stock valued at $3,685,000 after buying an additional 10,004 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of BRP by 16.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 171,554 shares of the company's stock worth $8,727,000 after purchasing an additional 24,171 shares during the period. Ontario Teachers Pension Plan Board lifted its stake in BRP by 31.2% during the 1st quarter. Ontario Teachers Pension Plan Board now owns 64,941 shares of the company's stock worth $2,193,000 after acquiring an additional 15,447 shares in the last quarter. Fiera Capital Corp raised its position in BRP by 5.5% in the 1st quarter. Fiera Capital Corp now owns 135,330 shares of the company's stock valued at $4,574,000 after purchasing an additional 7,082 shares in the last quarter. Finally, Turtle Creek Asset Management Inc. raised its position in BRP by 29.0% in the 4th 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 in the last quarter.

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.