Citi Downgrades BRP Inc. (DOOO) to Sell, 'Deteriorating Fundamentals and that’s Before Tariffs'

Citi analyst James Hardiman downgraded BRP Inc. (NASDAQ: DOOO) from Neutral to Sell with a price target of $29.00 (from $48.00).

The analyst comments "We are downgrading shares of both PII and DOO from Neutral to Sell, as both are dealing with a deteriorating and increasingly promotional end market, meaningful headwinds from incremental Chinese tariffs, and a potentially untenable situation with respect to Mexico and Canada tariffs. Were 25% tariffs on Mexican and Canadian imports to be levied indefinitely (an unlikely but distinct possibility), we believe that both companies would immediately incur significant losses, impacting their long-term prospects . Even in the absence of this scenario, however, the weakening of fundamentals in conjunction with the incremental Chinese tariffs is enough to weigh on valuations going forward."

For an analyst ratings summary and ratings history on BRP Inc. click here. For more ratings news on BRP Inc. click here.

Shares of BRP Inc. closed at $38.73 yesterday.

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