Update shared on20 Aug 2025
Fair value Increased 5.03%Analysts raised BRP’s price target from CA$69.56 to CA$73.06 on increased confidence in demand trends, market share gains, cost discipline, and improved margin outlook.
Analyst Commentary
- Bullish analysts cited improving retail demand trends and stronger than expected seasonality in key product categories.
- Upward revisions are driven by positive management commentary around inventory normalization and margin expansion.
- Increased visibility on cost discipline and progress on expense reduction initiatives contributed to higher earnings expectations.
- Stronger-than-projected North American powersports market share gains supported upward price target adjustments.
- Better backlog conversion and improving dealer sentiment enhanced forecasts for free cash flow generation.
What's in the News
- BRP unveiled extensive 2026 Can-Am ATV and SSV innovations, including the Outlander Electric (47 hp, 50-mile range, Level 2 charging), industry-first semi-active suspension for ATVs, new Outlander MAX 6x6 options, and Maverick R X rc for rock-crawling.
- BRP reinforced its electrification leadership, now offering electric ATVs, motorcycles (Can-Am Pulse/Origin), four electric snowmobiles (Ski-Doo/Lynx), and kart racing powertrains, all powered by BRP’s modular in-house Rotax E-Power system.
- The next-generation 2026 Can-Am Traxter SSV launched with a new 95 hp, 999cc Rotax engine, stronger chassis, best-in-class payload/towing/cargo, improved suspension, enhanced comfort, and doubled electrical output for accessories.
- BRP reported no share repurchases under its current buyback program.
- José Boisjoli will retire as President, CEO, and Chair by fiscal year-end after 22 years, with a CEO search underway; under his leadership, BRP tripled revenue and powersports market share.
Valuation Changes
Summary of Valuation Changes for BRP
- The Consensus Analyst Price Target has risen from CA$69.56 to CA$73.06.
- The Future P/E for BRP has risen slightly from 11.98x to 12.54x.
- The Discount Rate for BRP remained effectively unchanged, moving only marginally from 7.23% to 7.10%.
Disclaimer
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