Desjardins Upgrades BRP (DOOO) Stock, Lifts PT

On May 30, Desjardins analyst Benoit Poirier upped BRP Inc. (NASDAQ:DOOO)’s stock from “Hold” to “Buy,” while slightly lifting the price objective to C$78.00 from the prior target of C$77.00, as reported by The Fly.

Desjardins Upgrades BRP (DOOO) Stock, Lifts PT

A scenic view of a lake with a recreational vehicle speeding across its surface.

The analyst lauded the company’s performance in Q1 2026, mentioning stable retail performance, strong free cash flow (FCF) generation, and a lower-than-expected impact due to tariffs. Notably, BRP Inc. (NASDAQ:DOOO)’s FCF generation rose 40% to $162 million.

With respect to the tariff situation, BRP Inc. (NASDAQ:DOOO) stated that all its vehicles manufactured in Canada and Mexico remain USMCA compliant. The analyst cited expected end of inventory rightsizing and projected double-digit top-line growth in the latter half, because of new products, as the leading factors for the upgrade.

BRP Inc. (NASDAQ:DOOO) invested $51.4 million of its liquidity in capital expenditures focused on rolling out new products and modernization of its software infrastructure to help future growth. Overall, the analyst’s comments hinted at increased confidence about BRP Inc. (NASDAQ:DOOO) moving past its challenges.

Over the short term, despite the demand remaining soft because of a tough macro environment, BRP Inc. (NASDAQ:DOOO)’s robust product portfolio and leaner inventory levels place it well for a rebound.

BRP Inc. (NASDAQ:DOOO) is engaged in designing, developing, manufacturing, and selling powersports vehicles and marine products.

While we acknowledge the potential of DOOO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than DOOO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.