Scotiabank downgrades BRP to Sector Perform with earnings in ‘holding pattern’

As previously reported, Scotiabank analyst Jonathan Goldman downgraded BRP Inc. to Sector Perform from Outperform with a price target of C$91, down from C$103. The firm doesn’t think upcoming rate cuts will be sufficient to catalyze a snap-back in consumer demand, especially for high-ticket discretionary items, and given that view it believes Street estimates will “likely get rebased to much more realistic levels,” the analyst tells investors. Competitors were slower to react to softening market conditions and are acting aggressively to clear excess inventory, notes the analyst, who thinks BRP shares and earnings will be in “a holding pattern through at least 1H25.”