BRP stock is a “Liberation Day winner”, Citi says

“The biggest Liberation Day winner”.

That’s where Citi analyst James Hardiman thinks BRP (BRP Stock Quote, Chart News, Analysts, Financials TSX:DOO) stands in the North American travel and leisure sector.

As reported by The Globe and Mail, the analyst April 4 raised his rating on BRP from “Sell” to “Neutral”, and raised his price target on the stock from $39.00 to $52.00.

“At its core, BRP is a Canadian company that manufacturers product overwhelmingly in Mexico and sells product overwhelmingly in the U.S.,” Hardiman said. “While the tariff landscape remains fluid, this supply chain setup appears to have dodged the worst-case scenario, as tariffs on Mexico and Canada (at least for USMCA-compliant products) appear to be on the backburner (at least for now), postponing – if not eliminating – a potentially existential threat. Meanwhile, BRP competes with companies that import a significant amount of product (relative to DOO) into the U.S. from China/Japan, a supply chain setup that was disproportionately punished on Wednesday. Hence, running somewhat counter to the aims of Liberation Day, this Canadian company is arguably the biggest winner in our group, staving off the single-largest threat in our coverage and potentially gaining price/margin advantages in its primary end market.”

Hardiman says BRP somehow has slipped into a favourable crack in the market.

“In a number of categories then (most notably utility vehicles and ATVs, but to a lesser degree recreational side-by-sides), BRP could now see a tariff-born competitive advantage due to Chinese import exposure that is a small fraction of that at its competitors,” the analyst wrote. “Hence, running somewhat counter to the aims of Liberation Day, this Canadian company is arguably the biggest winner in our group, staving off the single-largest threat in our coverage and potentially gaining price/margin advantages in its primary end market.”