RBC Capital upgraded BRP Inc to Buy from Hold following its strong 3Q results. Shares of the Canada-based recreational vehicles manufacturer closed 3.3% higher on Thursday.
RBC Capital analyst Steve Arthur lifted the stock’s price target from C$75 to C$89 ($68.50), implying 26.7% upside potential, saying that he sees positive demand after the company’s “strong” 3Q results as dealers restock inventory.
BRP (DOOO) reported upbeat 3Q results on Nov. 25. Its adjusted earnings of C$2.13 per share topped the Street’s estimates of C$1.39 per share. Revenues of C$1.67 billion also came ahead of analysts’ expectations of C$0.97. The company raised its FY21 normalized EPS guidance from C$3.65-C$3.95 to C$5.00-C$5.25, which represents a year-over-year growth of 31% to 37%.
BRP’s CEO José Boisjoli said that “We are very pleased with our results as our strong line-up continues to gain market share globally. The surge in demand for our products has offered a major opportunity for us to continue this pace and we are working hard to maintain it.” He added that “We expect this positive trend to continue over the next quarter.” (See DOOO stock analysis on TipRanks).
The rest of the Street is in line with Arthur’s bullish outlook on the stock. The Strong Buy analyst consensus is based on 7 Buys and 2 Holds. The average price target stands at $66.19 and implies upside potential of about 22.4% to current levels. Shares have gained by about 18.6% year-to-date.
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