TD Securities upgraded BRP Inc. (DOOO) to Buy from Hold with a price target of C$70, up from C$65, following the Q1 report. The company’s inventory headwinds are easing, providing a path to revenue growth and margin expansion, the analyst tells investors in a research note. BRP achieved its 21% year-over-year target dealer inventory reduction, which should support market share gains, contends TD. The firm says the company’s margin benefits from volume, lower promotional intensity, and mix. With visibility to the inventory channel normalizing, TD anticipates BRP’s key headwinds of promotional activity and mix will ease.
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Read More on DOOO:
- BRP Inc. price target raised to C$60 from C$49 at Citi
- BRP’s Strategic Positioning and Optimistic Outlook Drive Buy Rating Despite Macroeconomic Challenges
- BRP Inc. upgraded to Buy from Hold at TD Securities
- BRP Inc. upgraded to Buy from Hold at Stifel
- Desjardins upgrades BRP Inc. to Buy saying ‘worst is over’
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