On Friday, June 16th, shares of DOO stock opened at C$108.57. BRP Inc, the parent company behind DOO, is a North American powersports and marine manufacturer that prides itself on providing year-round outdoor recreational products to consumers across several global regions. The company operates through two distinct segments: Powersports and Marine. These segments produce a variety of products that cater to consumers who enjoy outdoor activities such as ATVs, snowmobiles, and personal watercraft.
The powersports segment creates various recreational vehicles including Can-Am ATVs, SSVs and 3WVs; Ski-Doo and Lynx snowmobiles; and Sea-Doo PWCs and pontoons. The seasonal product aspect has proven lucrative for BRP, generating strong revenue streams during specific times of the year such as winter with their snowmobile line or summer with their watercraft offerings.
Marine-based products offered by BRP are targeted towards both commercial enterprises as well as individuals looking to indulge in aquatic activities. This segment produces Evinrude outboard engines designed specifically for powerboats along with innovative propulsion systems for fishing vessels.
In Q1 2023 financial reports released on March 23rd of this year, BRP reported earnings per share (EPS) of C$3.85 beating consensus estimates of C$3.75 by C$0.10.The firm had revenue of C$3.08 billion which exceeded analysts’ revenue estimates by approximately C$.14 billion dollars.
Various research firms have sizeably raised price targets on shares following a number of recent market analyses which rated the consumer goods manufacturer favorably with an average consensus rating of “Moderate Buy”. In particular: National Bankshares hiked BRP’s price target from $139 to $143and issued an”outperform” rating in March; Raymond James also raised their price targetfrom CDN $138 to CDN $139 in the same report as National Bankshares; Royal Bank of Canadahiked their price target from CDN $138 to CDN $141 and also issued an “outperform rating” report on June 2nd; contrastingly TD Securities decreased their target price for BRP shares from CDN $135 to CDN $110 whilst downgrading the stock from a “buy” rating to a “hold” in their report on June 2nd.
Shares of BRP are currently supported by detailed market statistics, standing at a PEG ratio of 0.91, keeping it well into value territory. BRP’s current ratio is at 1.36 and its quick ratio is at 0.20, showing strong financial agility along with a massive debt-to-equity ratio of 558.43, which highlights the need to keep an eye over such aspect, making this stock an intriguing potential investment opportunity for all investors interested in seasonal sports or marine recreational activities.
[bs_slider_forecast ticker=”DOO”]
BRP Inc.: A Promising Investment Opportunity with Strong Growth Potential
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”DOO” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]BRP Inc.: A Promising Investment Opportunity for FY2024
DA Davidson, a leading investment firm, recently released a research report boosting their earnings per share (EPS) estimates for BRP Inc. (TSE:DOO). This move shows confidence in the company’s potential growth and profitability. B. Rolle, a DA Davidson analyst, now anticipates that BRP will post earnings per share of $12.50 for FY2024. This is an increase from their prior estimate of $12.30.
BRP currently holds a “Buy” rating from DA Davidson with a price objective of $126.00 on their stocks. The consensus estimate for BRP’s current full-year earnings is $13.42 per share, indicating that the company’s projected EPS falls slightly short of the expected earnings amongst market analysts as of June 16, 2023.
Additionally, DA Davidson forecasts BRP’s FY2025 earnings at $14.00 EPS, which demonstrates the long-term growth prospects of this stock.
Moreover, with lower interest rates and strong consumer confidence, BRP’s progress also reflects rising demand for personal watercrafts, all-terrain vehicles, snowmobiles and boats from avid outdoor enthusiasts worldwide.
In addition to these positive signs for investors, BRP has also announced a quarterly dividend payable on July 14th for shareholders who held investments by June 30th. As per recent reports made available to the public domain last week on June 16th through official sources – Investors have good reason to invest in this company because shareholders who owned shares before June end will be paid a dividend of $0.18 per share.According to the declared figures by Bruceski.com ,The ex-dividend date was set as Thursday, June 29th ahead of the scheduled payment date.This translates into an annualized dividend payout ratio of 6.47%, thereby offering returns to shareholders in addition to the potential capital gains that BRP’s shares could generate.
Overall, BRP Inc. presents itself as an excellent investment opportunity with robust growth potential for FY2024 and beyond. Investors are advised to consider the impressive recent report from DA Davidson before making investment decisions.
