BRP Inc (DOO) Stock Forecast & Price Target

BRP is positioned favorably because its core powersports franchises are gaining share in SSV, ATV, and PWC, while strong product launches, improving inventory levels, and a more favorable promotional backdrop support demand. The company also appears to be managing tariffs and cost pressures relatively well, as Q1 revenue of $2,392 million, gross profit of $561.6 million, and normalized diluted EPS of $1.83 all exceeded expectations, while leverage remained low at 1.4x and FCF is expected to exceed $600 million. Its affluent customer base, expanding dealer network, and disciplined capital allocation through buybacks and capacity investment reinforce a durable long-term growth and earnings profile.

BRP is facing a deteriorating fundamental backdrop because tariffs are now a major structural drag, with a net tariff exposure of $200mm this year and $225mm on an annualized basis in 2027, while S338 alone is expected to create a ~$60mm-$65mm headwind next year. Despite slightly better ORV demand and some mitigation actions, gross margins were still hit by 740bp y/y from tariffs, and management’s revised F27 outlook now calls for sales of $9.125b-$9.325b but Adjusted EBITDA of only $925mm-$975mm and Normalized Diluted EPS of $3.00-$3.50, well below prior expectations. The outlook is further weakened by cyclical end-market exposure, North America concentration of ~72% of revenue, inflationary pressure, and a challenged marine portfolio that has been largely divested, leaving less diversification and limited room for execution errors.