Royal Bank Of Canada Issues Positive Forecast for Dollarama (TSE:DOL) Stock Price

Key Points

• Royal Bank of Canada raised Dollarama’s price target to C$225 from C$223 and maintained an “outperform” rating, implying 31.02% upside from the previous close.
• Analyst sentiment remains positive, with 10 Buy ratings and one Hold rating; Dollarama has a consensus “Moderate Buy” rating and an average target price of C$215.75.
• Shares fell 1.6% to C$171.73, despite strong quarterly results showing C$2.03 billion in revenue and C$1.29 in EPS, while management raised its fiscal 2027 sales-growth outlook.

Dollarama (TSE:DOL - Get Free Report) had its target price hoisted by Royal Bank Of Canada from C$223.00 to C$225.00 in a report issued on Thursday, BayStreet reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would suggest a potential upside of 31.02% from the company's previous close.

Several other equities research analysts have also issued reports on DOL. BMO Capital Markets raised their target price on shares of Dollarama from C$210.00 to C$221.00 in a report on Friday, June 12th. UBS Group cut their price target on shares of Dollarama from C$202.00 to C$190.00 in a report on Monday. TD decreased their price objective on shares of Dollarama from C$227.00 to C$217.00 and set a "buy" rating for the company in a research note on Thursday. Bank of America set a C$220.00 price objective on shares of Dollarama and gave the stock a "buy" rating in a research note on Friday, June 12th. Finally, Scotiabank boosted their target price on Dollarama from C$200.00 to C$220.00 in a research report on Friday, June 12th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Dollarama currently has a consensus rating of "Moderate Buy" and a consensus target price of C$215.75.

Dollarama Trading Down 1.6%

Shares of TSE DOL traded down C$2.83 during trading hours on Thursday, hitting C$171.73. 374,421 shares of the company traded hands, compared to its average volume of 705,607. The company's 50 day moving average price is C$183.81 and its 200 day moving average price is C$181.89. Dollarama has a 12 month low of C$163.25 and a 12 month high of C$209.96. The stock has a market capitalization of C$46.50 billion, a price-to-earnings ratio of 35.34, a price-to-earnings-growth ratio of 1.93 and a beta of 0.26. The company has a current ratio of 1.57, a quick ratio of 0.08 and a debt-to-equity ratio of 451.20.

Dollarama (TSE:DOL - Get Free Report) last posted its quarterly earnings data on Wednesday, September 16th. The company reported C$1.29 EPS 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%. On average, equities research analysts anticipate that Dollarama will post 5.3295203 earnings per share for the current fiscal year.

Trending Headlines about Dollarama

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

Dollarama Company Profile

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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