BRP stock price target raised to C$105 from C$75 at BMO Capital

BMO Capital significantly raised its price target on BRP Inc. (TSX:DOO, NASDAQ:DOOO) to C$105.00 from C$75.00, maintaining an Outperform rating. This upgrade reflects BRP's normalized fiscal Q2 2026 results that exceeded consensus and unexpected fiscal 2026 guidance surpassing Street estimates. The firm cited tailwinds from new product launches and progress in right-sizing dealer channel inventory, positioning BRP for market share gains and a favorable outlook extending through fiscal 2027.

Analysis

BMO Capital has materially upgraded its outlook on BRP Inc. (DOOO), increasing its price target by 40% to C$105.00 from C$75.00 while maintaining an Outperform rating. The revision is predicated on two key events: the company's normalized fiscal second-quarter 2026 results, which surpassed consensus expectations, and the unexpected release of fiscal 2026 guidance that came in ahead of Street estimates. BMO's positive stance is further supported by anticipated tailwinds from new product launches and significant progress in right-sizing dealer channel inventories, a trend observed both at BRP and across the broader industry. The analyst firm projects that these factors position BRP to recapture market share as the industry normalizes, with this favorable setup expected to persist through the second half of fiscal 2026 and into fiscal 2027. Consequently, BMO has raised its earnings estimates, signaling strong conviction in the recreational vehicle manufacturer's near- to medium-term performance.

Key Decisions for Investors

• Given BMO Capital's significant price target increase and Outperform rating, investors may view the unexpected positive guidance as a strong bullish signal, justifying a potential increase in exposure to BRP Inc. (DOOO).
• Investors should monitor BRP's ability to execute on its new product launches and gain market share as the industry normalizes, as these are the core catalysts cited for the positive outlook into fiscal 2027.
• The successful normalization of dealer inventory levels is a key de-risking event; traders should watch for continued progress on this metric as a sign that the company's operational footing is strengthening.