RBC Capital analyst Joseph Spak lowered the price target for BRP Inc (TSX:DOO) (NASDAQ:DOOO) to C$111 from C$128 while maintaining the Outperform rating on the shares.
The analyst attributed the reduced price target to a lower marking multiple to market.
Spak added that the 1Q23 beat and guide were reiterated, but there does appear to be less cushion in the balance of year guide.
Related: Flat Sales, Margin Pressure, Supply Chain Constraints - Lots To Look Into BRP's Q1 Results.
The analyst mentioned that the focus now is on the June 14-15 analyst day and new mid-term outlook, which management likely has less visibility than they would like.
However, Spak still believes the analyst day will show a path to higher earnings power.
Price Action: DOO shares are trading lower by 5.27% at C$85.40 on TSX, and DOOO is lower by 3.63% at $69.09 on NASDAQ on the last check Monday.
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