BRP Inc (Ski-Doo) stock: Snow machines, soft multiple – is the market underpricing this cyclical story?

BRP Inc (Ski-Doo) stock is trading like investors are caught between fresh powder and thin ice. Over the past trading week the maker of Ski-Doo snowmobiles and Sea-Doo watercraft has drifted around the low?70s in Toronto, with the last close at roughly CAD 72 per share according to both Yahoo Finance and Google Finance. The 5?day move is marginally negative, and when a stock inches lower while the broader market fades only slightly, it often signals that investors are bracing for a longer stretch of muted consumer spending.

Yet context matters. The shares are still well above the 52?week low near the low?60s but a long way from the 52?week high around the mid?90s. Over the last 90 days, BRP has effectively moved sideways in a choppy band between the high?60s and mid?70s, suggesting a consolidation phase after a sharp recovery off last year’s trough. The market is giving the company credit for solid execution but is not yet willing to pay up for a full powersports rebound.

One-Year Investment Performance

To grasp the emotional reality behind the chart, imagine an investor who bought BRP Inc (Ski-Doo) stock exactly one year ago. Around that time, the Toronto?listed shares traded near CAD 90 at the close, before the consumer discretionary slowdown and higher rates pulled valuations across the sector lower. With the stock now sitting close to CAD 72, that hypothetical investor would be staring at a loss of roughly 20 percent on paper.

Put differently, a CAD 10,000 position established a year ago would have shrunk to about CAD 8,000 today, a drawdown large enough to sting but not catastrophic in a volatile, cycle?sensitive niche like powersports. The underperformance versus major equity benchmarks amplifies the frustration. While broader indices have clawed out mid?single?digit gains over the same period, BRP holders have been paid mainly in dividends and hope, not in capital appreciation.

That duality defines the current mood around the stock. Long?term believers point to a structurally larger enthusiast base, strong brands and a still?modest valuation multiple. Skeptics counter that the last decade’s boom in side?by?sides and off?road vehicles pulled demand forward, leaving a hangover that could suppress earnings for several more seasons.

Recent Catalysts and News

Earlier this week, coverage from Canadian business media highlighted BRP’s ongoing push into electrification, with management reiterating that the company targets fully electric options across its product portfolio over the next few years. Recent product updates, particularly in the Sea-Doo and Can-Am lineups, emphasize more efficient engines and connected features rather than entirely new platforms. That combination of incremental innovation and long?range electrification messaging is designed to reassure both loyal riders and ESG?minded investors that BRP is not standing still.

In the past several days, traders have also been digesting lingering read?throughs from the company’s most recent quarterly report, published late in the previous quarter. Revenue came in broadly in line with expectations, but guidance remained cautious on North American retail demand, especially for big?ticket off?road vehicles. Management noted that dealer inventories are healthier than a year ago, yet promotional activity remains elevated, a clear sign that end?user demand is not roaring back just yet. That nuance is exactly what has kept the stock pinned in its current range.

News flow has otherwise been relatively light. There have been no major management shake?ups in the last week, and no blockbuster M&A announcements involving BRP. Instead, market attention has focused on macro data points that indirectly affect the company: softer inflation prints, tentative signs that interest rates may be at or near their peak, and indications that consumer confidence is stabilizing at subdued levels. For a discretionary manufacturer like BRP, those macro tea leaves matter almost as much as company?specific press releases.

Wall Street Verdict & Price Targets

On Wall Street and Bay Street, the verdict on BRP Inc (Ski-Doo) stock remains cautiously constructive. Over the past month, several sell?side houses have reiterated bullish stances even as they trim near?term earnings estimates. According to recent notes cited by Reuters and Yahoo Finance, firms such as BMO Capital Markets and RBC Capital Markets continue to rate the shares as Outperform or equivalent, with 12?month price targets clustered in the CAD 95 to CAD 105 range. That implies upside of roughly 30 to 45 percent from the current trading band.

U.S. investment banks that actively cover Canadian consumer names maintain a similar tone. Recent research from the likes of Bank of America and J.P. Morgan, referenced in financial media roundups over the last several weeks, characterizes BRP as a high?quality cyclical: one where balance sheet risk is contained and brand equity is strong, but where the earnings recovery path is not yet fully visible. The consensus recommendation emerges as a soft Buy rather than an emphatic one. Analysts are effectively saying the stock is cheap relative to normalized earnings power, while also warning that a prolonged slump in discretionary spending could delay that normalization longer than impatient investors might tolerate.

That tension shows up in the valuation debate. At the latest close, the stock trades at a mid?single?digit to low?double?digit forward earnings multiple, depending on which estimate set you use. Bulls argue that this is too low for an asset?light designer and marketer of premium recreational vehicles. Bears respond that these are peak?cycle earnings estimates masquerading as mid?cycle, and that any disappointment on volumes or pricing could compress the multiple further.

Future Prospects and Strategy

Underneath the noise of daily price moves, BRP’s business model remains strikingly consistent. The company designs, manufactures and markets powersports products: Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercraft and pontoons, Can-Am all?terrain and side?by?side vehicles, as well as Rotax engines. Its competitive edge lies in a mix of brand loyalty among enthusiasts, dealer relationships that span decades and a steady cadence of platform refreshes that keep riders trading up. A growing accessories, parts and apparel ecosystem adds a layer of recurring, higher?margin revenue.

Looking ahead, several factors will shape the stock’s performance over the coming months. The first is the macro backdrop. If interest rates start edging lower and consumer confidence improves even modestly, big?ticket discretionary purchases like off?road vehicles and snowmobiles could see a rebound, especially in North America and Europe. In that scenario, BRP’s order book and dealer sell?through would likely surprise to the upside, giving the stock room to close part of the gap to its 52?week high.

The second factor is execution on electrification and product innovation. Investors will be watching closely for concrete milestones in BRP’s electric lineup, not just high?level roadmaps. Launch timetables, early reviews from riders and dealers, and the company’s ability to maintain margins on new powertrains will all feed into how generous the market is willing to be with its valuation multiple. If electrified models gain traction while legacy internal?combustion products remain resilient, the narrative could quickly shift from cyclical concern to growth renaissance.

The third factor is capital allocation. BRP has toggled between share repurchases, dividends and growth investments in recent years. In a soft demand environment, investors tend to favor a more defensive posture emphasizing balance sheet strength and opportunistic buybacks when the stock trades at depressed multiples. Any shift in policy communicated on upcoming earnings calls will likely be parsed line by line by analysts searching for signals on management’s confidence level.

For now, the tape is sending a mixed message. The 5?day slide is shallow but negative, the 90?day chart is a sideways consolidation, and the 52?week picture shows a stock that has surrendered a meaningful chunk of prior gains. Against that technical backdrop, a one?year investor is nursing a double?digit loss while the Street still talks about upside. Whether BRP Inc (Ski-Doo) stock turns out to be an overlooked bargain or a classic cyclical value trap will come down to how quickly riders return to dealerships and how convincingly the company can turn its product roadmap into renewed growth. Until then, the shares are likely to keep carving cautious turns rather than racing downhill or soaring to new peaks.