Sporting equipment company Bombardier Recreational Products is the best bet in the outdoor powersports space, according to Citi. Analyst James Hardiman upgraded the stock to buy from neutral on Tuesday and raised his price target by $17 to $128. The firm's new target suggests shares stand to gain nearly 28% from Monday's closing price of about $100. Shares of the company, which produces ATVs and Sea-Doo snowmobiles and personal watercraft, have dropped 8.
Hardiman lowered his price target on the stock to $110, implying 3.2% upside from its latest close. "We are significantly more comfortable with DOO's inventory strategy, as the company continues to chase demand, as opposed to a much more aggressive stance taken by Polaris, who appears to be punting the $750M replenishment headwind into 2024," Hardiman said in a note.