BRP (TSE:DOO) Stock Rating Lowered by TD

Key Points

• TD downgraded BRP from "buy" to "hold" and cut its price target to C$84.00 (down from C$119.00), implying about a 20.2% upside from the stock's then-current price.
• BRP shares tumbled 35.3% to C$69.89 on heavy volume, trading well below many analyst targets despite a MarketBeat consensus of "Moderate Buy" and a consensus target of C$111.20.
• Key fundamentals show high leverage and tight liquidity (debt-to-equity 443.59, quick ratio 0.20) alongside a market cap of C$5.11B and a P/E of 17.7, highlighting balance-sheet risk despite strong ROE.

BRP (TSE:DOO - Get Free Report) was downgraded by analysts at TD from a "buy" rating to a "hold" rating in a research note issued to investors on Wednesday,BayStreet.CA reports. They currently have a C$84.00 price objective on the stock, down from their previous price objective of C$119.00. TD's price target indicates a potential upside of 20.19% from the stock's current price.

DOO has been the subject of several other research reports. BMO Capital Markets upped their target price on shares of BRP from C$115.00 to C$120.00 and gave the company an "outperform" rating in a report on Friday, March 27th. Royal Bank Of Canada lowered their price target on BRP from C$131.00 to C$124.00 and set an "outperform" rating on the stock in a report on Monday, March 30th. Ci Capital cut their price objective on shares of BRP from C$128.00 to C$119.00 and set a "buy" rating for the company in a research report on Friday, March 27th. Raymond James Financial cut their price target on shares of BRP from C$117.00 to C$115.00 in a report on Friday, March 27th. Finally, Desjardins increased their target price on BRP from C$130.00 to C$138.00 and gave the stock a "buy" rating in a research note on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, BRP presently has a consensus rating of "Moderate Buy" and a consensus target price of C$111.20.

BRP Stock Down 35.3%

DOO traded down C$38.15 during trading hours on Wednesday, hitting C$69.89. 1,405,911 shares of the company's stock were exchanged, compared to its average volume of 253,784. The company has a current ratio of 1.27, a quick ratio of 0.20 and a debt-to-equity ratio of 443.59. BRP has a 12-month low of C$43.88 and a 12-month high of C$112.26. The firm has a market cap of C$5.11 billion, a P/E ratio of 17.69, a price-to-earnings-growth ratio of 2.05 and a beta of 0.94. The firm has a 50 day moving average of C$99.20 and a 200 day moving average of C$97.98.

BRP (TSE:DOO - Get Free Report) last posted its quarterly earnings results on Thursday, March 26th. The company reported C$2.21 EPS for the quarter. BRP had a net margin of 3.45% and a return on equity of 54.95%. The business had revenue of C$2.46 billion during the quarter. Analysts predict that BRP will post 6.890971 EPS 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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