Polaris and BRP fall after Citi downgrades on tariff uncertainty

Shares of powersports vehicle-makers Polaris PII.N fall 2.15% to $41.65, while BRP DOO.TO, DOOO.O down 2.6% at $37.72

Citi downgrades both stocks to "sell" from "neutral"

Cuts PT on Polaris to $33 from $49, and to $29 from $48 for BRP

PII and DOO are dealing with weak and increasingly promotional end-market and are directly exposed to Mexico and Canada tariffs from the Trump administration, brokerage says

"The first order of business for Polaris will likely be the dividend and debt covenants, neither of which appear manageable if any incremental tariffs get added to the mix" - Citi

Brokerage also raises concerns over dependence of DOOO on Canada and Mexico for its operations and its ability to handle economic challenges and policy changes

Up to last close, PII stock down 53.1% and DOOO down ~37% in the past 12 months