BRP guidance suspension likely worst case scenario, says Stifel

Stifel keeps a Buy rating on BRP Inc. (DOO) after the company suspended its annual guidance to reflect recent amendments to Section 232 tariffs on steel exports to the U.S. that were implemented on April 6. “The magnitude of the impact is mind-blowing, but it is likely the worst case scenario,” the analyst tells investors in a research note. Stifel says the impact should start in fiscal Q2 as most of the products sold in Q1 were exported into the U.S. under a lower tariffs structure. The firm is not changing BRP’s forecasts, noting tariffs “have proven to be volatile,” but expects the stock to trade lower on Wednesday. BRP in premarket trading s down 11% to $70.20.