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TSE:DOO

BRP INC. (DOO.TO)

84.64
+0.40 (0.47%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
62 watching
0
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.
TOP PICK
He likes the price momentum and the fact they bought back a large number of shares. With strong employment and wage growth, they will do well in the consumer discretionary spending space. There are few competitors in the space. Yield 0.67% (Analysts’ price target is $63.04)
DON'T BUY
He's concerned with the $20,000 big ticket Skidoo that DOO sells which is a luxury, not a necessity to own. Canadian consumers are already heavily in debt and can't afford this. In the US, NAFTA/USMCA is a problem because these products are made in Mexico and could face tariffs. DOO is a value trap and not timely.
TOP PICK
They are doing an issuer bid to buy back a lot of stock. 20%+ growth rate over the last 4 years. They continue to take a ton of market share from competitors. There is limited down side risk because of the large buy-back issuer bid. (Analysts’ price target is $54.50)
DON'T BUY
Trading at 11.5x earnings, close to all-time lows. His concern is that it's a highly discretionary, big-ticket purchase and we're not late in the cycle. They make ski-do's and other big-ticket toys. So, what happens to these products (and their demand) in a weak economy? One good change is that they have installed a new chairman. However, they have some operations in Mexico, which is a risk in this era (Trump's pro-America, anti-Mexico rhetoric),.
PARTIAL BUY
Seadoo margins seem to be tightening. The PE is only 11 times. Free cash flow is strong. However, with their products being recreational based, it is highly dependent on the well the economy does. A reasonable buying prospect.
WAIT
Very expensive. High-priced luxury consumer item. Purchases will be cut as the economy slows down, which he thinks is happening. Buy a company like this in the middle of a recession.
WEAK BUY
This snow mobile marker was the crown jewel carved out of Bombardier. It is probably worth looking at and is a well run business. He has been waiting for a reason to buy -- maybe it is now.
PAST TOP PICK
(A Top Pick Jan 02/18, Down 6%) Still likes the name. Its was doing much better 3 months ago but the company kind of shot itself on the foot with a secondary offering and passed some shares at the top. There was no dilution but call the top on the transaction. They are doing some nice things. Thematically they are in the right space in terms of demographics.
PAST TOP PICK

(A Top Pick March 30, 2017. Up 96%). This company does recreational vehicles (Ski-Doo) and has been doing extremely well since it went public. Even with the big price runup, this company still has decent valuation. It scores in the top 15% on valuation. The valuation is getting more expensive compared to when he invested, but it is still reasonable given the company’s growth profile.

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