BRP Shares Soar 8.51% on Earnings Surge, Leadership Change

BRP(DOOO) shares surged 8.51% today, marking the second consecutive day of gains, with a total increase of 22.49% over the past two days. The stock price reached its highest level since February 2025, with an intraday gain of 10.14%.

The strategy of buying DOOO shares after they reach a recent high and holding for 1 week resulted in poor performance over the past 5 years. The strategy yielded a return of -32.79%, significantly underperforming the benchmark return of 49.45%. The excess return was -82.24%, and the CAGR was -15.40%, indicating substantial losses. The strategy also had a high maximum drawdown of -48.73% and a Sharpe ratio of -0.41, suggesting significant risk and negative returns.

BRP Inc. recently announced that its long-term President and CEO, José Boisjoli, will retire by the end of the fiscal year. The company is actively searching for a successor as part of its succession plan. This leadership change comes after Mr. Boisjoli's 22-year tenure marked by significant growth and diversification. The transition in leadership is expected to bring new strategies and directions for the company, which could impact investor sentiment and stock performance.

In the first quarter of 2025, BRP Inc. reported a net income surge of 279% to $161 million, despite a revenue decline of 7.7% to $1.85 billion. The company also surpassed earnings and revenue estimates for Q1 2025, with earnings per share of $0.33 beating the consensus estimate of $0.29. This strong financial performance has bolstered investor confidence in the company's ability to navigate market challenges and maintain profitability.

Analysts have also shown optimism towards BRP Inc., with TD Securities upgrading the company from Hold to Buy and raising its price target to C$70. Additionally, Desjardins upgraded the company to Buy, citing that the "worst is over," and increased the price target to C$78. These upgrades reflect a positive outlook on the company's future prospects and have contributed to the recent surge in stock price.