The 2024 new product lineup that BRP (CA:BRP, US:DOOO) debuted at last weekend’s  Quebec powersports manufacturer’s annual dealer show should give BRP stock investors confidence.

Leading with the 2024 Can-Am Maverick R side-by-side (SSV) off-roading vehicle, the Canadian maker of snowmobiles, all-terrain vehicles, motorcycles, and personal watercraft looks like it can ride out any softness in consumer spending over the second half of 2023 and into 2024.

The share price began a slow creep down in mid February, before a sharper decline triggered by investors who read too much into management’s guidance on March 23. 

Record first-quarter 2024 results reported in early June curbed the slide. Now the shares are down 11.7% in the last six months.

That decline could signal an opportunity; Here’s why. 

New Products Speak for Themselves

While there were other new products revealed at the annual dealership show, there's no question the Maverick R SSV captured the attention of those in the industry.

“With a 240 horsepower powerplant, state-of-the-art DCT gearbox, and the chassis and suspension to harness the power, the new Maverick R is truly a race-ready side-by-side purpose-built for the most demanding riders,” said Sandy Scullion, president, Powersports Group at BRP. 

The Maverick R isn’t cheap, with a manufacturer’s suggested retail price of $44,000. However, buying one of these SSVs gives you more power than any other SSV in the industry. (All figures in Canadian dollars, unless otherwise specified.) 

It should sell well in the U.S., where the company generates 60% of its revenue. Its year-round products, which include SSVs and all-terrain vehicles, accounted for 48% of its $10.03 billion in revenue in 2023. 

“Can-Am all-terrain vehicles (ATVs) and side-by side-vehicles (SSVs) have had the fastest-growing market share in the category in North America every year since 2015. The brand is the market leader in ATVs in Canada and, in the USA, in the ATV top Rec-Ute segment, and the SSV Rec-Sport 64” high HP segment,” stated BRP’s 2023 Annual Review.

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Although the Maverick R took most of the spotlight, other new products for 2024 were launched, including the next generation of the Sea-Doo Spark, a smaller, more affordable personal watercraft, and the 2024 Sea-Doo RXP-X, a supercharged  325 hp Rotax 1630 ACE engine, that will get you from 0 to 60 miles per hour in less than 3.4 seconds.

Analysts Are Confident About BRP’s Future

BRP reports its Q2 2024 results on Sept. 7. National Bank analyst Cameron Doerksen believes the company has what it takes to keep growing its sales. 

“While retail demand for powersports in Q2 looks to be solid, we expect some softening as we move into H2 but also expect the company to outperform the industry supported by ongoing market share gains and tailwinds from new product introductions,” The Globe and Mail reported Doerksen’s comments from an Aug. 22 note to clients.

Thanks to its position within the powersports industry, despite possible softness in consumer big-ticket items, Doerksen remains optimistic about BRP for the remainder of fiscal 2024 (January year-end). The analyst has an Outperform rating on its stock with a $143 target, $10 above the analyst average of $133.89.

He’s not the only one who finds BRP attractive. 

BMO analyst Tristan Thomas-Martin attended BRP’s annual dealer show this past weekend in Atlanta.

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“Similar to what we heard at PII’s dealer event, dealers commented that retail has been slow again in August due to poor weather, a return to normal seasonality, economic headwinds, and interest rates taking a toll on consumers. However, we think DOO’s brands are continuing to outperform,” the Globe reported Thomas-Martin’s comments. 

He also has an ‘outperform’ rating with a $154 target, 45% higher than where it’s currently trading. 

If anyone can report good quarterly sales and earnings in the current environment, it will likely be BRP. Shareholders ought to be smiling.