12 Best Automotive Stocks to Invest in According to Analysts

4. BRP Inc. (NASDAQ:DOOO)

Upside Potential: 38%

Number of Hedge Fund Holders: 6

BRP Inc. (NASDAQ:DOOO) is a Canadian company renowned for manufacturing recreational vehicles like snowmobiles, boats, ATVs, and side-by-side vehicles. It owns brands such as Ski-Doo, Sea-Doo, Can-Am, Manitou and Quintrex boats, Rotax outboard engines, and Rotax jet propulsion systems.

In Q3 FY 2025 (FY ending January), BRP Inc. (NASDAQ:DOOO) reported revenues of $1.96 billion, a decrease of 18% year-over-year, attributed to softer demand and a focus on inventory reduction. Net income declined by 69.7% to $27.3 million, while normalized EBITDA dropped 42.9%. Profit decline was mainly driven by higher fixed and operating costs on lower production. North American retail sales fell by 11%, though off-road vehicle inventory reductions met targets ahead of schedule. Despite these challenges, BRP reaffirmed its full-year revenue guidance of $7.6-$7.8 billion and projected normalized EPS of $4.25-$4.75.

The company has begun the process of divesting its Marine business to concentrate on its core powersports operations. Management is said to be sharpening its focus on these core activities to foster long-term profitable growth, with plans to launch exciting new products in the coming years. Although there are ongoing concerns about tariffs and exposure to China, the analyst from RBC reaffirmed his confidence in BRP Inc. (NASDAQ:DOOO) on January 6, maintaining a Buy rating and a price target of approximately $70.