BRP Inc (DOO) Stock Forecast & Price Target

BRP is favored because its core powersports franchises are gaining share in premium, current-unit categories while retail demand stays resilient, especially in utility ORV and among affluent households. Q1 revenue of $2,392 million, normalized EBITDA of $334.4 million, and normalized diluted EPS of $1.83 all beat expectations, while leverage improved to 1.4x and inventory moved toward near-optimal levels. The outlook is further supported by new product traction, dealer expansion, international growth, and expected free cash flow above $600 million, which gives room for buybacks and continued investment despite tariffs and higher commodity costs.

BRP is facing a weakened fundamental setup as tariff costs, now expected to be $200 million in 2026 and $225 million in 2027, are compressing profitability and clouding visibility on normalized earnings power. Its revised F27 guide for sales of $9.125 billion to $9.325 billion and Adjusted EBITDA of $925 million to $975 million still implies a sharp earnings decline, while Normalized Diluted EPS of $3.00 to $3.50 sits well below prior expectations and reflects a heavy tariff burden plus higher commodity inflation. The negative view is reinforced by cyclical demand exposure, with around 72% of revenue tied to North America, and by uncertainty over tariffs, USMCA, and the need for more clarity before major strategic actions.