BRP wins price target raise at Citi

Citi analyst James Hardiman says BRP (BRP Stock Quote, Chart, News, Analysts, Financials TSX:DOO) has more upside to estimates than Polaris after stronger off-road vehicle checks and better-than-expected Q2 results.

As reported by The Globe and Mail, Hardiman raised his target on BRP to $110.00 from $106.00 after introducing his fiscal 2028 estimates. He maintained his “Buy” rating. The average target is $102.68.

“Our most recent ORV dealer checks point to modest July/August retail growth for both PII and DOO, on top of what similar growth reported for 2Q,” Hardiman said.

The analyst said tariffs remain unpredictable, though companies are improving mitigation efforts. Fuel, freight and transportation costs are also likely to become a larger issue during Q3 earnings.

BRP reported fiscal Q2 revenue of $2.24-billion, up 18.5% year-over-year, driven mainly by higher off-road vehicle shipments and a favourable side-by-side mix.

Normalized EBITDA was $138.8-million, down 34.9% from a year earlier. The company reported a net loss of $136.8-million and a normalized diluted loss of 18 cents per share.

North American powersports retail sales increased 1%, while BRP gained market share in off-road vehicles.

CEO Denis Le Vot said the quarter exceeded expectations, reflecting stronger ORV shipments, sustained retail momentum and reduced net tariff costs.

BRP raised its full-year normalized diluted EPS guidance to a range of $4.00 to $4.50.

The company also announced a planned CFO transition. Sébastien Martel will retire as CFO Oct. 1 and become executive advisor to the CEO until his retirement in April 2027. Minh Thanh Tran will become CFO.

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