TD downgrades BRP on ‘major expense headwind’ from tariffs

TD Securities downgraded BRP Inc. (DOO) to Hold from Buy with a price target of C$84, down from C$119, after the company withdrew its fiscal 2027 outlook due to U.S. tariff changes. Canaccord this morning also downgraded the shares. The tariff amendments are a “major expense headwind” for BRP, one that is likely more than peers due t the company’s production in Mexico and Canada, the analyst tells investors in a research note. TD believes BRP has levers to mitigate costs, but believes higher pricing could lead to a negative impact on market share. The stock in premarket trading is down 23%, or $17.99, to $60.46.