Sprouts Farmers Market closes $600 million revolving credit facility
On Friday, BMO Capital Markets adjusted their outlook on BRP Inc . (TSX:DOO:CN) (NASDAQ: DOOO), raising the price target from Cdn$70.00 to Cdn$75.00, while keeping the Outperform rating steady. The stock has shown strong momentum with a 13% return over the past week. Tristan Thomas-Martin, an analyst at BMO, provided a positive assessment of the company’s future, citing several factors that could contribute to an upward trajectory in the second half of the fiscal year 2026. According to InvestingPro analysis, the stock appears slightly undervalued based on its proprietary Fair Value model.
BRP (NASDAQ:DOOO)’s financial results for the first quarter of FY2026 aligned with expectations, with the company maintaining a healthy EBITDA of $636 million and a current ratio of 1.34. Despite current economic challenges that may dampen retail demand and the absence of specific guidance for FY2026, the management team at BRP expressed confidence. They anticipate a positive turn in the latter half of the fiscal year, driven by the rollout of the model year 2026 (MY26) products, the stabilization of channel inventory, and effective mitigation of existing tariffs. InvestingPro data reveals several positive indicators, including consistent dividend payments for 9 consecutive years and management’s aggressive share buyback program, with 8 more exclusive ProTips available to subscribers.
In addition to financial projections, BRP announced a significant corporate update. The company’s President and CEO, José Boisjoli, has revealed plans to retire by the end of the fiscal year 2026. This announcement comes at a time when the company is looking forward to potential growth and operational advancements, with analysts expecting net income growth this year.
BMO’s revised price target reflects an increase in their estimates, which are in line with the company’s recent commentary. The new target of Cdn$75.00 represents BMO’s confidence in BRP’s ability to navigate through near-term market challenges and capitalize on the upcoming product launches and inventory adjustments.
BRP, known for its powersports vehicles and propulsion systems, has been closely watched by investors as it adapts to the evolving economic landscape and prepares for a leadership transition. The company’s strategic focus on innovation and market adaptation appears to resonate with BMO’s positive outlook for the latter half of FY2026.
In other recent news, BRP Inc. reported first-quarter results that exceeded expectations, with revenue reaching C$1.85 billion, surpassing analyst estimates of C$1.23 billion, despite an 8% year-over-year decline. The company posted adjusted earnings per share of C$0.47, outperforming the consensus estimate of C$0.29. BRP attributed the revenue decline to lower shipments as it focused on aligning inventory levels with current market trends. Stifel Canada upgraded BRP Inc.’s stock from Hold to Buy, increasing the price target to Cdn$68.00, citing an anticipated end to the sales decline and potential growth in EBITDA margins and earnings per share in the latter half of fiscal year 2026. Desjardins also upgraded BRP’s stock to Buy, raising the price target slightly to Cdn$78.00, highlighting the company’s effective management, robust free cash flow, and anticipated double-digit top-line growth driven by new products. Both firms expressed optimism about BRP’s future performance, pointing to improved inventory management and strategic direction. Analysts noted that the risk of tariffs has diminished, and BRP’s valuation remains attractive compared to competitors. Investors are keeping a close eye on BRP’s developments as it seeks to capitalize on its new product offerings and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.