Desjardins analyst Benoit Poirier upgraded the rating on BRP (DOOO – Research Report) to a Buy yesterday, setting a price target of C$78.00.
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Benoit Poirier has given his Buy rating due to a combination of factors that indicate a positive outlook for BRP. The company’s management has demonstrated impressive execution in a challenging environment, with significant reductions in inventory and strong free cash flow generation. Additionally, the impact from tariffs was less severe than expected, which further supports the positive assessment.
Management’s confidence in achieving double-digit top-line growth in the second half of FY26, driven by new product introductions, adds to the optimism. The company’s balance sheet is in excellent condition, with a forecasted free cash flow yield of 14% and a leverage ratio expected to improve to 2.2x by year-end. With the stock trading at an attractive valuation and the potential for a 41% upside, Poirier believes the worst is likely over for BRP, justifying the upgrade to a Buy rating.
DOOO’s price has also changed moderately for the past six months – from $48.730 to $40.550, which is a -16.79% drop .