BRP (TSE:DOO) Shares Down 35.7% After Analyst Downgrade

BRP Inc. (TSE:DOO) shares were down 35.7% during mid-day trading on Wednesday after Desjardins lowered their price target on the stock from C$138.00 to C$97.00. Desjardins currently has a buy rating on the stock. BRP traded as low as C$67.85 and last traded at C$69.45. Approximately 670,343 shares were traded during mid-day trading, an increase of 176% from the average daily volume of 242,794 shares. The stock had previously closed at C$108.04.

Several other equities analysts have also weighed in on the stock. Wells Fargo & Company raised their price objective on shares of BRP from C$105.00 to C$110.00 and gave the company an “overweight” rating in a research report on Friday, March 27th. Seaport Research Partners lowered shares of BRP from a “buy” rating to a “hold” rating in a research report on Wednesday. Ci Capital decreased their price target on shares of BRP from C$128.00 to C$119.00 and set a “buy” rating on the stock in a research report on Friday, March 27th. Canaccord Genuity Group lowered shares of 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 report on Wednesday. Finally, TD lowered shares of BRP from a “buy” rating to a “hold” rating and decreased their price target for the stock from C$119.00 to C$84.00 in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, BRP currently has an average rating of “Moderate Buy” and an average target price of C$103.88.

Trending Headlines about BRP

Here are the key news stories impacting BRP this week:

• Positive Sentiment: Seeking Alpha published an article arguing that tariff concerns around BRP have been “justified, but exaggerated,” suggesting near‑term panic may be overdone and that fundamentals remain intact. This note likely reduced fear selling and helped lift the share price. BRP: Justified, But Exaggerated, Tariff Panic
• Positive Sentiment: Desjardins cut its price target to C$97 but maintained a “buy” rating, implying ~28.9% upside from the recent price — a supportive analyst voice that can attract buyers after the pullback. Desjardins rating
• Neutral Sentiment: Scotia trimmed its target to C$80 and set a “sector perform” rating (roughly a low-single-digit upside). That keeps analysts divided and frames the move as more of a valuation reset than a fundamental sell signal. Scotia rating
• Negative Sentiment: National Bank Financial downgraded BRP from “outperform” to “hold” and cut its price target to C$80, signaling reduced near‑term conviction. National Bank downgrade
• Negative Sentiment: TD Securities moved BRP from “strong-buy” (and earlier “buy”) to “hold” and lowered its target (earlier reports show a C$84 target), reflecting waning upside expectations from a previously bullish shop. TD downgrade
• Negative Sentiment: Canaccord Genuity downgraded BRP from “buy” to “hold” and cut its target to C$90, adding to the cluster of analyst downgrades this week that increase near‑term downside risk. Canaccord downgrade

BRP Stock Performance

The firm’s fifty day simple moving average is C$97.82 and its 200 day simple moving average is C$97.63. The company has a market capitalization of C$5.50 billion, a price-to-earnings ratio of 19.05, a PEG 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 (TSE:DOO) last announced its 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 company had revenue of C$2.46 billion during the quarter. On average, sell-side analysts forecast that BRP Inc. will post 6.890971 EPS for the current year.

BRP Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 24th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Friday, April 10th. BRP’s dividend payout ratio (DPR) is presently 21.77%.

BRP Company Profile

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).