BRP Downgraded to Hold at Stifel GMP on Light Demand for Recreational Vehicles; Price Target Cut to C$97.00

09:46 AM EDT, 08/21/2024 (MT Newswires) -- Stifel GMP on Wednesday downgraded its rating on the shares of BRP (DOO.TO, DOOO) to hold from buy while cutting its price target to C$97.00 from C$106.00 as it sees weak demand for the recreational-vehicle manufacturer's products.

"We attended Club BRP 2025, an annual gathering where the company hosts its dealers for business discussions and unveils its new line-up for 2025. The event was well attended but sentiment was cautious. BRP launched its long-awaited electric motorcycles, marking the company's entrance in a new segment of the powersport industry. BRP also launched new SSVs, ATVs, PWCs and 3WVs, making this show one with the biggest product launches in recent years. We believe these new products will help BRP continue to win market share. However, discussions with dealers suggests that consumer demand continues to be tepid resulting in weak traffic and high inventory levels. As a result, we believe that the industry recovery may take longer than expected and that consensus estimates may have to come down for FY26. Hence, with potential for further share weakness we downgrade our rating to HOLD and reduce our target to $97.00," analyst Martin Landry wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 93.07, Change: -1.04, Percent Change: -1.11