BRP Inc. downgraded to Sell from Neutral at Citi

Citi downgraded BRP Inc. (DOOO) to Sell from Neutral with a price target of $29, down from $48. The company faces a “deteriorating and increasingly promotional” end market, meaningful headwinds from incremental Chinese tariffs, and a potentially “untenable situation” with respect to Mexico and Canada tariffs, the analyst tells investors in a research note. The firm says that were 25% tariffs on Mexican and Canadian imports to be levied indefinitely, BRP would immediately incur significant losses, impacting its long-term prospects, the analyst tells investors in a research note. Citi says that even in the absence of this scenario, the weakening of fundamentals in conjunction with the incremental Chinese tariffs is enough to weigh on the stock going forward.