On Monday, BRP (NASDAQ:DOOO) Inc. (DOO:CN) (NASDAQ: DOOO) experienced a shift in stock rating as Desjardins moved its recommendation from Buy to Hold. The firm also reduced the price target for BRP's shares from Cdn$110.00 to Cdn$94.00. The adjustment comes amid concerns over near-term growth catalysts for the company.
Desjardins cited several reasons for the downgrade, including a challenging consumer environment and aggressive actions by competitors. According to the firm, these factors could exert additional downward pressure on BRP's stock. Desjardins highlighted the potential difficulties BRP may face in safeguarding its share price through buybacks.
Despite the downgrade, Desjardins maintains a positive long-term outlook on BRP. The firm acknowledges BRP's prospects for market share gains against less investing competitors and anticipates benefits from new products. However, the current market conditions have prompted a more cautious short-term stance.
Investors are advised to look for a more favorable entry point into the stock or to wait for signs of improvement in retail sales. This guidance suggests a strategic approach to investing in BRP shares, given the current market dynamics and the company's position.
The revised price target of Cdn$94.00 reflects Desjardins' recalibrated expectations for BRP's stock performance in the near future, taking into account the factors that might influence its trajectory.
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