The analysis presents a clear picture of BRP navigating a significant cyclical downturn. The moves to divest the marine segment and manage dealer inventory, alongside the push into EVs, are central to the company's efforts to realign for future growth.
One key aspect is the valuation context: assessing BRP based on forward-looking estimates rather than current trough earnings is indeed critical.
The path forward will largely depend on the conviction in, and timing of, the earnings recovery against what appears to be already priced into those forward multiples.
Great reading! BRP is one of my core holdings. I’ve accumulated shares during this downcycle. What are your thoughts on their Q1 earnings that just came out this morning? Thank you!
The analysis presents a clear picture of BRP navigating a significant cyclical downturn. The moves to divest the marine segment and manage dealer inventory, alongside the push into EVs, are central to the company's efforts to realign for future growth.
One key aspect is the valuation context: assessing BRP based on forward-looking estimates rather than current trough earnings is indeed critical.
The path forward will largely depend on the conviction in, and timing of, the earnings recovery against what appears to be already priced into those forward multiples.
Thanks for your comment! Agree with you.
Excellent analysis. Adding this to our Best Stock Pitches newsletter today.
Thank you!
Great reading! BRP is one of my core holdings. I’ve accumulated shares during this downcycle. What are your thoughts on their Q1 earnings that just came out this morning? Thank you!
They are not great, but I would say they are in line with the expectations.