BRP (TSE:DOO) Announces Earnings Results

BRP (TSE:DOO) issued its earnings results on Thursday. The company reported C($0.18) EPS for the quarter, FiscalAI reports. BRP had a net margin of 1.21% and a return on equity of 20.51%. The firm had revenue of C$2.24 billion during the quarter.

BRP Stock Performance

TSE DOO opened at C$93.06 on Friday. The stock has a market capitalization of C$6.86 billion, a price-to-earnings ratio of 25.43, a PEG ratio of 2.05 and a beta of 0.81. BRP has a twelve month low of C$67.11 and a twelve month high of C$112.26. The company has a current ratio of 1.19, a quick ratio of 0.20 and a debt-to-equity ratio of 912.53. The stock has a 50-day moving average of C$87.13 and a 200 day moving average of C$87.69.

BRP News Summary

Here are the key news stories impacting BRP this week:

• Positive Sentiment: National Bank Financial upgraded BRP from “hold” to “outperform” and raised its price target to C$112 from C$98. The new target implies approximately 20% upside from the referenced C$93.06 share price, providing a favorable near-term valuation signal.
• Positive Sentiment: BRP raised its full-year outlook as demand for its recreational vehicles held up better than expected and reduced net tariff costs supported the forecast. The improved guidance appears to be outweighing concerns about the quarterly loss. Ski-Doo maker BRP raises full-year outlook on reduced net tariff costs
• Positive Sentiment: The company said sales remained resilient despite U.S. tariffs, while its updated outlook suggests management expects to offset part of the related cost burden through pricing, sourcing, or other measures. BRP raises full-year guidance as demand holds up despite U.S. tariffs
• Neutral Sentiment: BRP appointed Minh Thanh Tran as chief financial officer. The leadership change could improve financial oversight, but no immediate financial impact was provided. BRP appoints Minh Thanh Tran as CFO
• Negative Sentiment: BRP reported a C$136.8 million second-quarter loss, or C$(0.18) per share, despite revenue of approximately C$2.24 billion. The company also cautioned that third-quarter normalized earnings could be weak, creating a near-term earnings headwind. BRP reports second-quarter loss and raises full-year guidance
• Negative Sentiment: Management expects tariffs to reduce earnings by roughly C$425 million over the next two years. Although the full-year outlook was increased, the tariff exposure remains a significant risk to margins and cash flow. BRP predicts tariff hit over next two years despite rising sales

Analysts Set New Price Targets

A number of research firms have weighed in on DOO. National Bank Financial upgraded BRP from a “hold” rating to an “outperform” rating and lifted their price objective for the company from C$98.00 to C$112.00 in a research note on Thursday. TD upgraded BRP from a “hold” rating to a “buy” rating and upped their target price for the stock from C$92.00 to C$106.00 in a research note on Wednesday, August 19th. Scotiabank raised their target price on BRP from C$80.00 to C$83.00 and gave the stock a “sector perform” rating in a report on Friday, May 29th. Stifel Nicolaus cut BRP from a “buy” rating to a “hold” rating and reduced their price target for the company from C$92.00 to C$85.00 in a research report on Friday, May 29th. Finally, Desjardins boosted their price target on BRP from C$97.00 to C$103.00 and gave the company a “buy” rating in a report on Monday, June 1st. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of C$101.53.

About BRP

BRP Inc is a global leader in the world of powersports products and powertrains, built on over 80 years of ingenuity, innovation, and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on- and off-road vehicles, Quintrex boats as well as Rotax engines for karts, recreational aircraft and jet boats, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds.