Stifel GMP on Thursday maintained its hold rating on the shares of BRP (DOO.TO, DOOO) while cutting its price target to C$58.00 from C$78.00 as it assesses the outlook for the recreational-vehicle manufacturer following the threat of U.S. tariffs.

"We see a binary outcome for BRP's shares in the coming weeks. Under a scenario where tariffs are imposed by the Trump Administration, it could weigh on BRP's profitability during a transition period. We could see lower sales volumes as a result of higher prices and consumer confidence declining further. BRP's balance sheet could also come into focus under this scenario. We think this could propel the shares below $50. Under a scenario of no tariffs, investors may start looking at BRP's earnings torque and give more credibility to FY27 EPS estimates which are baking in an earnings recovery. This could trigger a rally and send the shares past $60 and perhaps higher as we believe that current valuation partly reflects some tariff headwinds. Hence, while valuation has receded materially, the clouded outlook and binary outcome keeps us on the sidelines at the risk of missing a short-term rally," analyst Martin Landry wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 51.26, Change: -3.29, Percent Change: -6.03