Shares of BRP Inc. (TSE:DOO) have been upgraded to a strong buy by the National Bank of Canada in a research report published on Thursday, October 12, 2023. This marks a significant shift for the stock, which has garnered attention from several investment analysts recently.
On the same day, Loop Capital also classified BRP shares as a “strong buy,” indicating a positive outlook for the company. Other financial institutions have joined the trend, reflecting growing confidence in BRP’s performance. For instance, TD Securities raised its target price for the stock from C$87.00 to C$107.00 in a report issued on September 2, 2023. This adjustment came with a “buy” rating, suggesting strong future demand for the stock.
Canaccord Genuity Group also increased its price target for BRP from C$108.00 to C$116.00, while maintaining a “buy” rating in a report released on October 10, 2023. Similarly, Stifel Nicolaus lifted its price target from C$97.00 to C$106.00 and provided a “buy” rating. On October 16, 2023, the Royal Bank of Canada raised its price objective for BRP from C$100.00 to C$107.00, giving the stock an “outperform” rating.
As a result of these upgrades, BRP has attracted considerable analyst attention. Currently, four analysts rate the stock as a strong buy, nine have issued a buy rating, and two maintain a hold rating. According to MarketBeat, BRP holds a consensus rating of “buy,” with a consensus price target of C$109.08.
BRP Announces Quarterly Dividend
In addition to the positive analyst ratings, BRP also announced a quarterly dividend of $0.215 per share, which was paid on October 14, 2023. Shareholders of record as of that date received this dividend, which amounts to an annualized total of $0.86 and reflects a yield of 0.8%. The ex-dividend date was set for September 29, 2023. It is important to note that BRP’s current dividend payout ratio (DPR) stands at -170.00%, indicating that the company is currently paying out more in dividends than it is earning.
About BRP
BRP designs, develops, manufactures, distributes, and markets a variety of recreational products, including snowmobiles, all-terrain vehicles, and personal watercraft. The company operates under well-known brands such as Ski-Doo, Sea-Doo, Can-Am, and Lynx. Additionally, BRP produces engines under the Rotax brand, having ceased production of the Evinrude outboard engine in 2020. The company also offers a comprehensive range of clothing, parts, and accessories tailored to its customer base.
As BRP continues to receive positive feedback from analysts and maintain its strong product offerings, it appears well-positioned for future growth in the recreational vehicle market.
