TD Cowen says BRP’s tariff headwinds may be “less onerous” than anticipated, as new product updates could classify several vehicles under utility HTS codes “potentially not subject to S232 tariffs,” which “could represent $200mm in relief.” Coupled with resilient demand, analyst Brian Morrison says BRP could see upward revisions to its estimates. “Ongoing Sx S momentum/share gains,” with strength in year‑round products like the Can‑Am Defender are expected to drive 2Q revenue growth of 6% year‑over‑year, Morrison raises his rating to buy from hold, and lifts the target price to C$106 from C$92.

Cargojet’s strategy to improve revenue quality and better‑manage costs appears to be paying off. CIBC analysts say that the benefits of Cargojet are “dynamically redeploying aircraft across the network” as part of its One Fleet Strategy, allowing the company to “absorb this additional volume without adding aircraft as this strategy frees up excess capacity.” The analysts note that this is coupled with improvements to the company’s procurement process which has helped drive vendor savings. Maintenance capex is expected to be steady, and minimal growth capex. Taken together, the analyst say this contributes to an improving free cash flow profile and “highlights CJT’s healthy FCF growth potential.”

Ski‑Doo and Sea‑Doo maker BRP’s new branded financial services offering could be good for dealer and company earnings, says Stifel’s Martin Landry. “This new program should provide end‑customers with a more seamless financing solution, fast approval and dedicated support,” the analyst says in a report, adding that the program should also allow BRP to collect more data on its end‑customers, strengthening communications and potentially developing lasting relationships with them. For dealers, he says that the product could also increase their earnings, “as in some instances, financing and insurance can represent up to a third of dealers’ profitability.” BRP says that up to 70% of all transactions are financed “making this an important factor in purchasing decisions.”