Stifel Canada on Friday raised its rating on the shares of BRP (DOO.TO) to buy from hold while raising its price target to C$68.00 from C$49.00 following fiscal first-quarter results from the recreational vehicle manufacturer.

"BRP reported depressed Q1FY26 results with sales down 8% Y/Y, the seventh consecutive quarter of declining sales. However, this trend could end next quarter as the outlook is improving and Q2FY26 sales could increase Y/Y. Admittedly, this change in outlook arrives earlier than expected but is the catalyst that we have been waiting for to turn more positive. Our forecasts now call for revenues to increase Y/Y in each of the next three quarters and for EBITDA margins and EPS to increase in H2/FY26. BRP is expected to return to a growth mode, despite the industry still being depressed as the company has mostly completed its inventory depletion and will lap easier comparable periods. The risk of tariffs being a structural issue for BRP has also abated significantly. In addition, valuation is compelling at 6x forward EBITDA, a discount of 35% to Polaris forward consensus (PII, $39.89, NC). Hence, we are upgrading our rating to BUY," analyst Martin Landry wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 59.86, Change: +3.86, Percent Change: +6.89