Polaris and BRP fall after Citi downgrades on tariff uncertainty

BRP

20/03/2025 14:36

** Shares of powersports vehicle-makers Polaris PII.N fall 2.15% to $41.65, while BRP DOO.TO, DOOO.O down 2.6% at $37.72

** Citi downgrades both stocks to "sell" from "neutral"

** Cuts PT on Polaris to $33 from $49, and to $29 from $48 for BRP

** PII and DOO are dealing with weak and increasingly promotional end-market and are directly exposed to Mexico and Canada tariffs from the Trump administration, brokerage says

** "The first order of business for Polaris will likely be the dividend and debt covenants, neither of which appear manageable if any incremental tariffs get added to the mix" - Citi

** Brokerage also raises concerns over dependence of DOOO on Canada and Mexico for its operations and its ability to handle economic challenges and policy changes

** Up to last close, PII stock down 53.1% and DOOO down ~37% in the past 12 months

 (Reporting by Padmanabhan Ananthan)

 ((Padmanabhan.Ananthan@thomsonreuters.com))