01:27 PM EDT, 09/06/2024 (MT Newswires) -- BRP's second quarter results were ahead of NBF and consensus forecasts, but management slashed 2025 guidance.

National Bank is maintaining its Sector Perform rating and $100 target on BRP shares and continues to be positive about BRP's long-term growth as it believes the company will gain additional market share and generate incremental revenue from new-product introductions. Analyst Cameron Doerksen also believes that the current year will represent a market trough for the powersports industry. "However, we continue to take a more cautious approach on the stock in the near term as end market conditions for the industry clearly remain challenging."

The stock was downgraded to Sector Perform in late August, but based on the material guidance cut, Doerksen expects to further cut its forecast for both F2025 and F2026. "Given the uncertainty around how market demand might rebound next year, we see no reason to change our rating on the stock at this time."

Maintain Sector Perform, $100 target.

Price: 85.19, Change: -4.16, Percent Change: -4.66