BRP (TSE:DOO) Downgraded to "Hold" Rating by National Bank Financial

Key Points

• Analyst downgrade: National Bank Financial cut BRP from a "strong‑buy" to a "hold," and Canaccord also lowered its rating, though the MarketBeat consensus remains a Moderate Buy with a C$111.20 target.
• Price vs. targets and leverage: Shares opened at C$69.83, well below the C$111.20 consensus target and 12‑month high of C$112.26, while the company shows high leverage (debt/equity 443.59) and a P/E of 17.68.
• Recent results: BRP reported C$2.21 EPS and C$2.46 billion revenue for the quarter, with a 54.95% ROE but a modest net margin of 3.45%.

BRP (TSE:DOO - Get Free Report) was downgraded by stock analysts at National Bank Financial from a "strong-buy" rating to a "hold" rating in a research note issued on Wednesday,Zacks.com reports.

DOO has been the topic of several other research reports. BMO Capital Markets boosted their price target on BRP from C$115.00 to C$120.00 and gave the stock an "outperform" rating in a research note on Friday, March 27th. Ci Capital decreased their price target on BRP from C$128.00 to C$119.00 and set a "buy" rating on the stock in a research note on Friday, March 27th. Wells Fargo & Company boosted their price target on BRP from C$105.00 to C$110.00 and gave the stock an "overweight" rating in a research note on Friday, March 27th. Citigroup decreased their price target on BRP from C$128.00 to C$119.00 in a research note on Monday, March 30th. Finally, Canaccord Genuity Group lowered BRP from a "buy" rating to a "hold" rating and decreased their price target for the stock from C$118.00 to C$90.00 in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of C$111.20.

BRP Price Performance

Shares of TSE:DOO opened at C$69.83 on Wednesday. The business's 50 day simple moving average is C$98.41 and its 200-day simple moving average is C$97.78. The firm has a market capitalization of C$5.11 billion, a price-to-earnings ratio of 17.68, a price-to-earnings-growth ratio of 2.05 and a beta of 0.94. The company has a debt-to-equity ratio of 443.59, a current ratio of 1.27 and a quick ratio of 0.20. BRP has a 12 month low of C$43.88 and a 12 month high of C$112.26.

BRP (TSE:DOO - Get Free Report) last announced its quarterly earnings results on Thursday, March 26th. The company reported C$2.21 EPS for the quarter. The business had revenue of C$2.46 billion for the quarter. BRP had a return on equity of 54.95% and a net margin of 3.45%. As a group, equities analysts forecast that BRP will post 6.890971 earnings per share for the current fiscal year.

About BRP

BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand (after discontinuing the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. In 2018, BRP created a marine group, acquiring boat manufacturers Alumacraft, Triton (which makes Manitou pontoon boats), and Telwater (in Australia).

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