02:29 PM EDT, 06/03/2024 (MT Newswires) -- BRP's first quarter result was in line, but FY 2025 guidance, particularly second quarter expectations, was lowered to reflect ongoing caution from its dealer network and retail softness in Seasonal Products and Marine, notes BMO.

Despite guidance being cut again, BMO thinks the company is making the right decision to further reduce channel inventory levels in order to better position itself for FY 2026.

"We believe DOO continuing to take ORV share, and an implied FY26 EPS baseline in the $9.00s (albeit below Street expectations) is enough to support the stock during a choppy FY25."

Maintain Outperform, $115 target.

Price: 88.26, Change: +3.10, Percent Change: +3.63