BRP Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

BRP Inc. (DOOO) is scheduled to release its second-quarter earnings on August 29, with analysts anticipating $0.33 EPS and $1.31 billion in revenue. This report follows the company's recent agreement to sell its Manitou business. Analyst sentiment is mixed but generally positive, with TD Securities and Desjardins upgrading the stock and Citigroup raising its price target, though UBS recently cut its target; BRP shares gained 0.8% on Thursday.

Analysis

BRP Inc. (DOOO) is approaching its second-quarter earnings release on August 29 with consensus expectations set at $0.33 EPS and $1.31 billion in revenue. This financial report follows a key strategic development on July 8, when the company agreed to divest its Manitou business. Analyst sentiment leading into the report is mixed but has shown recent positive momentum. In late May, both TD Securities and Desjardins upgraded the stock to Buy, with TD Securities also increasing its price target from $65 to $70. More recently, in mid-June, Citigroup maintained a Neutral rating but raised its price target to $51. This contrasts with an earlier, more cautious view from UBS, which maintained a Neutral rating in April while cutting its price target to $35. The stock's modest 0.8% gain to $57.49 indicates a market in a holding pattern ahead of the earnings catalyst, which will provide crucial data points to either validate the recent upgrades or justify the lingering caution.

Key Decisions for Investors

• Investors should monitor BRP's Q2 earnings on August 29, as performance relative to the $0.33 EPS and $1.31 billion revenue consensus will be a primary driver of near-term price action.
• Given the conflicting analyst ratings—two recent 'Buy' upgrades versus two 'Neutral' ratings—positions should be managed with an awareness of this underlying uncertainty, which the earnings report and subsequent guidance may resolve.
• Evaluate management's commentary on the strategic rationale and financial impact of the Manitou business sale, as this divestiture could significantly alter the company's long-term growth profile and operational focus.