TD Securities Downgrades BRP (TSE:DOO) to Hold

Key Points

• TD Securities downgraded BRP (TSE:DOO) from "strong‑buy" to "hold" and cut its price target from C$119 to C$84, with Canaccord making a similar downgrade to "hold" and lowering its target to C$90.
• Despite these cuts, analysts overall show a consensus rating of "Moderate Buy" (1 Strong Buy, 8 Buy, 5 Hold) with a consensus target price of C$111.20.
• Shares opened at C$69.83 (market cap C$5.11B) with a P/E of 17.68 and a 52‑week range of C$43.88–C$112.26; BRP recently reported quarterly EPS of C$2.21 and revenue of C$2.46B but carries a very high debt‑to‑equity ratio (443.59).

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

Other equities analysts have also recently issued reports about the company. Canaccord Genuity Group cut BRP from a "buy" rating to a "hold" rating and cut their price target for the stock from C$118.00 to C$90.00 in a report on Wednesday. TD cut BRP from a "buy" rating to a "hold" rating and cut their price target for the stock from C$119.00 to C$84.00 in a report on Wednesday. BMO Capital Markets increased their price target on BRP from C$115.00 to C$120.00 and gave the stock an "outperform" rating in a report on Friday, March 27th. Citigroup cut their price target on BRP from C$128.00 to C$119.00 in a report on Monday, March 30th. Finally, Ci Capital cut their price target on BRP from C$128.00 to C$119.00 and set a "buy" rating on the stock in a report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of C$111.20.

BRP Price Performance

BRP stock opened at C$69.83 on Wednesday. The stock has a market capitalization of C$5.11 billion, a price-to-earnings ratio of 17.68, a PEG ratio of 2.05 and a beta of 0.94. BRP has a 52-week low of C$43.88 and a 52-week high of C$112.26. The stock's 50 day moving average price is C$98.41 and its two-hundred day moving average price is C$97.78. The company has a debt-to-equity ratio of 443.59, a quick ratio of 0.20 and a current ratio of 1.27.

BRP (TSE:DOO - Get Free Report) last posted its quarterly earnings results on Thursday, March 26th. The company reported C$2.21 earnings per share (EPS) for the quarter. The firm 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%. On average, equities analysts predict that BRP will post 6.890971 earnings per share for the current 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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