2023-03-21 08:58:08 ET
In new initiations in the powersports sector by RBC, Polaris ( NYSE: PII ) was assigned a Hold rating while Canadian jet ski manufacturer BRP Inc. ( NASDAQ: DOOO ) was rated a Buy.
“We see BRP Inc. ( DOOO ) as being well positioned for growth in both the Powersports and Marine industries given its rich legacy of innovation and track record of delivering against its targets,” equity analyst Sabahat Khan told clients. “We believe the company will be able to successfully deliver against its medium-term targets, and we view the current share price as presenting an attractive entry point.”
She assigned the stock a $137 price target and an Outperform rating.
That initiation was more bullish than his new coverage on Polaris ( PII ), which was assigned a Sector Perform rating and $115 price target. Khan indicated that the valuation at present balances the risk/reward dynamic for the name.
“We believe meaningful share gains are unlikely at this point given Polaris’ established position, size, and track record, particularly within the powersports industry,” she wrote. “As a result, we expect Polaris to largely grow in line to above the rate at which its end-markets are growing.”
Khan said an uncertain macro backdrop limits the upside in this regard.
Read more on Polaris’ most recent earnings results .
For further details see:
RBC starts BRP at Buy, Polaris at Hold