BRP集团在摩根大通升级为超重后上涨

J.P. Morgan upgraded BRP Group (NASDAQ:BRP) from Neutral to Overweight and also raised the price target from $27 to $33, as it expects margins, earnings quality and cash flow to improve. 

Shares in the company up 1.9% in pre-market trade.

"BRP begins to reap the benefits of integration efforts, operating leverage from hiring and other organic growth investments, and a more benign interest rate environment, we think the stock could outperform," the analysts said.

The analysts see BRP’s OCF margins improving from mid-single-digits in 2023 to the mid-to-high teens range in 2026, placing it in the same neighborhood as other brokers.

"Contingent pay-outs to hurt BRP’s free cash flow through 2025, but there is a clear line of sight for improvement," the note said, adding that BRP should not have any issues funding these pay-outs.

J.P. Morgan also expects the company to potentially report differentiated organic growth in 2024, which would be a positive for the stock.

SA quant rates the company at Hold.