BRP Inc (TSE:DOO) Receives Rating of “Buy” from Consensus

BRP Inc (TSE:DOO) has gained a consensus rating of “Buy”. Apart from RBC Capital and National Bank Financial; Scotiabank have also rated a “Sector Outperform” rating and set a C$28.00 price target on shares of BRP because of company’s solid and well-diversified product portfolio and geographic revenue mix, new incremental capacity and related product introductions, and margin-enhancement opportunities.

Shares of BRP (TSE:DOO) are currently trading at $21.60. BRP has hit at low of $13.87 and high of $28.94 in one year. The company has a market cap of $2.44 billion and a P/E ratio of 31.56. The stock has a 50-day moving average of $20.96 and a 200 day moving average of $18.70.

Company expected second half to be strong and underpinned by new product introductions. The company intends to double their utility category market share from approximately 10% in FY 2017 to 20% in FY2020. Additionally, management believes its Roadster Spyder has great potential and could see sales go up from approximately $300million to $600million over the next 5 to 6 years. Weak consumer discretionary spending and unfavorable weather are only considerable risks of investment.

As per experts, product innovation should continue to support a) increase in BRP’s market shares and b) providing dealers with increased sales opportunities and superior margins compared to Polaris (PII-N) and Honda.

BRP Inc (TSE:DOO) is a Canada-based company engaged in design, development, manufacturing, distribution and marketing of power sports vehicles and propulsion systems. It has four product categories: the year-round products; the seasonal products; the propulsion systems, and parts, accessories and clothing (PAC) products.

Tags: , ,

Neil Kwan, Post graduate in Finance, is editor and financial analyst and reports Basic Materials, Financial & REIT and Healthcare sectors. Prior joining Equities Mogul, Neil Kwan worked with Cleveland Research. If you have a great story idea for Neil Kwan, you can write at [ ].


2 Penn Plaza New York, NY 10121
Phone: 1-845-470-0417