BRP Inc. is back in investors’ good graces after a cluster of upbeat calls followed last week’s earnings. Royal Bank of Canada raised its price target on the powersports maker to C$100 from C$68 while maintaining an Outperform rating, citing a better quarter and guidance that topped expectations. The tone shift across the Street helped extend a rally that began after BRP reinstated full-year outlook and surprised to the upside on revenue and profit.
It is worth clarifying what changed and what did not. RBC did not shift its rating. The bank reaffirmed Outperform and took its target to C$100, pointing to “good” second-quarter results and fiscal 2026 guidance that it said was well ahead of consensus, according to a summary of the note.
The formal upgrade, from Neutral to Outperform, came from CIBC, which also lifted its target to C$100. Canaccord Genuity raised its stance to Buy earlier this week. The combination underscored improving sentiment around a stock that struggled through last year’s inventory clean-up and a softer demand backdrop.
BRP, which sells Ski-Doo snowmobiles, Sea-Doo watercraft, and Can-Am off-road vehicles, delivered a cleaner quarter on August 29 and reinstated full-year targets.
Management now expects fiscal 2026 revenue between C$8.15 billion and C$8.3 billion and normalized diluted EPS of C$4.25 to C$4.75. That guidance, along with evidence that dealer networks are healthier, gave analysts more confidence that margins can rebuild into the back half of the year.
The company’s update also helped investors look past last year’s reset, when BRP prioritized inventory reductions over near-term earnings.
The market reaction has been swift. BRP shares jumped after the print and pushed higher again as ratings and targets moved up. RBC’s new target implies additional upside from recent trading levels in Toronto, where the stock has been hovering around the low C$90s this week.
Several other firms adjusted forecasts in tandem, with TD Securities moving to C$106 and National Bank to C$101, while Scotiabank and BMO also lifted targets.
The dispersion reflects both a better path for volumes and the possibility of incremental operating leverage if retail demand holds through the fall and into the winter selling season.
For investors, the call stack matters as much as the numbers. Powersports remains a discretionary category, and BRP still faces macro sensitivity tied to financing costs and consumer confidence. The bull case rests on normalized channel inventory, a refreshed product slate, and more predictable promotional activity.
The bear case points to elevated rates and the risk that a softer consumer delays big-ticket purchases. RBC’s higher target and CIBC’s upgrade effectively say the balance of risks has improved since the spring, when coverage leaned cautious and guidance was on hold.
What to watch next is the cadence of retail data through September and October and any commentary on snowmobile pre-season trends. Investors will also parse marine updates given the continued normalization that sector is undergoing.
If BRP converts its guidance into steady execution, the recent re-rating could have room to run. If demand wobbles, the stock’s recovery could stall, since expectations have quickly risen along with price targets.
For now, the Street’s message is consistent. The company did the hard work to reset inventories, restored guidance with a clearer path to earnings, and earned back some trust. RBC’s target hike, paired with CIBC’s upgrade, gives the rally a durable narrative, even if the true test will come in holiday quarter sell-through and margins across accessories and parts.
