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TSE:DOO

BRP INC. (DOO.TO)

84.29
+1.77 (2.14%)
as of Jun 12, 2026, 8:00:00 pm Market Open.
106 watching
0
PARTIAL BUY

They make snowmobiles and enjoyed a surge during Covid, but a correction since as people are travelling. DOO is cyclical and shares are near the bottom of the cycle now. A best in class company. You can start nibbling at this.

DON'T BUY

High priced items are not good in a slowing economy. Consumer toys not needed during tough economic times. Wait to see how economy recovers before buying this type of stock.

HOLD
Stock price has fallen as pandemic demand has decreased. Goods consumption will not be as strong in 2022 as it was in 2021. Good quarter and recent stock buy backs have been positive. Waiting to see what happens in the next few months with earnings. Has long term record of good capital allocation. Stock price currently expensive.
BUY

It benefited from staycations during the pandemic. The stock has rebounded lately. It will be cyclical, so beware if there is a recession. Until then, demand for snowmobiles has remained strong which bodes well for DOO.

WAIT
He would not be a buyer right now. They had a strong run-up on demand but now there are constraints on inputs into the manufacturing process. They also had a fire recently.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There is no news to account for the weakness. The stock rose last week and has essentially returned to those levels. Estimates have risen, which pushes expectations to beat on earnings. The company has beaten estimates 8 quarters in a row. Unlock Premium - Try 5i Free

HOLD
Frustrating when you get things right on the demand side, but supply doesn't follow through. That's the risk going forward. The chip shortage is catching everyone. Hold on to it. The theme of outdoor recreation is here to stay, and demand will last for quite some time.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS beat estimates at $2.53.EBITDA rose to $375M. Revenue growth guidance was also raised from 27% to 35% compared to 25%-30% before. Results look solid. Good entry point around $93. Unlock Premium - Try 5i Free

HOLD
It is the consumer spending money into the economy. This is a good stock to be in and even though they have a good backlog, you will find that investors will start to lose interest starting late April. Put a trailing stop on it later on in April.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is showing better momentum and 5i likes it. It is cheap on valuation and is less vulnerable to changing customer taste. Unlock Premium - Try 5i Free

PAST TOP PICK
(A Top Pick Nov 01/19, Up 10%) They have done exceedingly well. This is probably due to the stimulus checks in the US. For a while they couldn't even supply the market. Demand is strong. Metrics look good.
HOLD
Hard to believe that in a middle of a recession, their products would be in high demand. But they are. The stimulus cheques are being spent as discretionary income. Scores well on momentum and valuation, but volatile. High beta. Earnings outlook is reasonable. Don't sell it here.
COMMENT
Good operators and they have expanded production. With people traveling by plane less, there's more demand for recreational vehicles, but this demand will be limited by this economic slowdown. All discretionary spending stocks have gone too far ahead.
PARTIAL BUY
They are on his radar. They took a beating through March but now people are looking to social distance. Their debt levels are more than he is comfortable with. He would scale into a position.
SELL
It has very high beta and is very sensitive to market movements. It is more risky as a result, especially in weak economic times and markets. He is of the view that the recent market rallies are due for a retracement. Longer term the company has a dominant position in watercraft products. However, these are "boy toys" and are likely going to be impacted by weaker incomes for buyers during the recession. There are better opportunities out there. There could be downside towards $14 for the share price. He would sell it here.
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