01:54 PM EST, 12/06/2024 (MT Newswires) -- National Bank is keeping its Sector Perform rating and $84 target on BRP shares following fiscal third-quarter results that beat expectations.

"Challenging powersports end market conditions for at least the next several quarters are arguably already priced into the share price, and we do expect F2025 will be the trough earnings year for BRP," writes analyst Cameron Doerksen.

He remains cautious on the stock in the near-to-mid-term as dealer inventories may need to be reduced further in calendar 2025. The return of the Trump Administration has also seen the risk of tariffs on powersports imports into the U.S. market rise materially with BRP potentially vulnerable.

"We expect BRP will be able to adapt to new tariffs and its peers will similarly be impacted to varying degrees, but the uncertainty on this issue is likely to weigh on investor sentiment in the coming quarters."

Price: 74.27, Change: +6.22, Percent Change: +9.14