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On Friday, DA Davidson maintained its Buy rating on BRP Inc . (TSX:DOO:CN) (NASDAQ: DOOO) but reduced its price target from Cdn$88.00 to Cdn$70.00. The adjustment follows BRP (NASDAQ:DOOO)’s announcement that it surpassed earnings expectations for the fourth quarter of 2025 and decided against providing formal earnings per share (EPS) guidance for the fiscal year 2026. According to InvestingPro data, BRP’s stock is currently trading near its 52-week low of $35.37, having declined over 41% in the past six months, suggesting potential value opportunity for investors looking at the company’s fundamentals.
BRP’s shares experienced an uptick after the company reported its 4Q25 earnings. The powersports vehicle manufacturer, which generated $5.4 billion in revenue over the last twelve months, has successfully reduced its off-road vehicle (ORV) field inventory, achieving a 19% year-over-year decrease in dealer inventories. This reduction surpasses the lower end of its 15%-20% target set for the fiscal year 2025. InvestingPro analysis reveals that management has been actively buying back shares, demonstrating confidence in the company’s future prospects. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis with a subscription.
Despite potential challenges from tariffs that could affect BRP’s earnings, the company’s strategic destocking efforts are seen as a positive move for its long-term stability and success. DA Davidson’s revised price target of Cdn$70.00 is based on a price-to-earnings (P/E) multiple of 14.0 times the firm’s fiscal year 2027 earnings estimate of $5.00 per share, which is lower than the consensus estimate of $5.60.
BRP’s proactive inventory management is part of a broader strategy to navigate the current economic landscape effectively. The company’s performance and strategic decisions have been acknowledged by DA Davidson’s analysis, reinforcing the Buy rating despite the reduction in the price target. The new price target reflects the firm’s confidence in BRP’s fundamentals while accounting for external factors that might influence its earnings potential.
In other recent news, BRP Inc. has been the focus of several analyst updates and financial results. The company’s fourth-quarter earnings exceeded expectations, with normalized earnings per share (EPS) of C$0.98, surpassing both Raymond (NSE:RYMD) James’ estimate of C$0.79 and the consensus of C$0.82. Despite a 65% year-over-year decline in EPS, the results were at the higher end of BRP’s guided range. BRP’s normalized EBITDA also exceeded projections, coming in at C$240 million against a forecast of C$236 million by Raymond James. However, concerns over tariffs have led BRP to defer its FY2026 guidance, prompting BMO Capital to reduce its price target from Cdn$100 to Cdn$70, though maintaining an Outperform rating. Similarly, Citi downgraded BRP from Buy to Neutral, lowering the price target to Cdn$70 due to potential tariff impacts. Meanwhile, Raymond James adjusted its price target to Cdn$65 but retained a Strong Buy rating, citing BRP’s market share growth and strategic initiatives. These developments reflect the complexities BRP faces amid current economic uncertainties.
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