Dollarama (TSE:DOL) Price Target Cut to C$210.00 by Analysts at Desjardins

Key Points

• Desjardins lowered Dollarama’s price target to C$210 from C$215 while maintaining a “buy” rating, implying 22.28% potential upside. Analysts overall maintain a “Moderate Buy” consensus with an average target of C$215.75.
• Dollarama shares fell 1.6% to C$171.73, while the company trades at a 35.34 price-to-earnings ratio and has a market capitalization of approximately C$46.5 billion.
• Recent quarterly results were strong, with revenue rising 17.6% year over year to C$2.03 billion and EPS increasing 11% to C$1.29. Management also raised its fiscal 2027 sales-growth outlook, citing customer traffic, consumables demand and consumers seeking lower-priced goods.

Dollarama (TSE:DOL - Get Free Report) had its target price reduced by analysts at Desjardins from C$215.00 to C$210.00 in a research report issued to clients and investors on Thursday, BayStreet reports. The brokerage currently has a "buy" rating on the stock. Desjardins' price target points to a potential upside of 22.28% from the stock's current price.

Several other brokerages have also recently issued reports on DOL. Scotiabank upped their price objective on Dollarama from C$200.00 to C$220.00 in a research note on Friday, June 12th. Canadian Imperial Bank of Commerce boosted their price target on Dollarama from C$202.00 to C$228.00 in a report on Friday, June 12th. BMO Capital Markets upped their price target on Dollarama from C$210.00 to C$221.00 in a research report on Friday, June 12th. Bank of America set a C$220.00 price objective on Dollarama and gave the stock a "buy" rating in a research note on Friday, June 12th. Finally, Stifel Nicolaus lifted their price objective on shares of Dollarama from C$190.00 to C$215.00 in a report on Friday, June 12th. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of C$215.75.

Dollarama Stock Down 1.6%

TSE DOL traded down C$2.83 during trading hours on Thursday, reaching C$171.73. 374,421 shares of the company traded hands, compared to its average volume of 705,607. Dollarama has a 12 month low of C$163.25 and a 12 month high of C$209.96. The company has a current ratio of 1.57, a quick ratio of 0.08 and a debt-to-equity ratio of 451.20. The stock has a market capitalization of C$46.50 billion, a PE ratio of 35.34, a PEG ratio of 1.93 and a beta of 0.26. The company has a 50 day moving average of C$183.81 and a two-hundred day moving average of C$181.89.

Dollarama (TSE:DOL - Get Free Report) last released its earnings results on Wednesday, September 16th. The company reported C$1.29 earnings per share for the quarter. The company had revenue of C$2.03 billion during the quarter. Dollarama had a net margin of 17.65% and a return on equity of 95.90%. As a group, equities analysts expect that Dollarama will post 5.3295203 earnings per share for the current year.

Dollarama News Summary

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Strong Q2 results: Dollarama reported revenue of C$2.03 billion, up 17.6% year over year, while EPS rose 11% to C$1.29. The performance reflects continued demand from Canadian consumers seeking lower-priced goods. Dollarama: Q2 EPS up 11%
• Positive Sentiment: Raised fiscal 2027 outlook: Management increased its Canadian sales-growth expectations after the better-than-anticipated quarter, supported by traffic, consumables demand and consumers trading down amid inflation and economic uncertainty. Dollarama raises fiscal 2027 guidance after Q2 sales growth
• Positive Sentiment: Defensive retail positioning: Executives said shoppers are making more careful spending decisions, which may continue to benefit Dollarama’s value-focused stores if household budgets remain constrained. Dollarama expects higher sales as inflation-hit shoppers look for discounts

About Dollarama

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company's product offerings. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.

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