Desjardins Cuts Dollarama (TSE:DOL) Price Target to C$205.00

Key Points

• Desjardins cut its price target on Dollarama from C$218 to C$205.00 while maintaining a "buy" rating, implying about an 18.8% upside from the prior close.
• Analyst views are mixed — the consensus is a Moderate Buy with an average target of C$202.92, and individual targets ranging roughly C$180–C$232 across firms.
• Dollarama posted strong Q4 results (C$1.43 EPS, C$2.10B revenue, ~18.6% net margin) but issued cautious sales guidance and missed same‑store sales, which, along with management's reluctance to broadly raise prices, pressured the stock.

Dollarama (TSE:DOL - Get Free Report) had its target price lowered by research analysts at Desjardins from C$218.00 to C$205.00 in a research report issued to clients and investors on Wednesday,BayStreet.CA reports. The brokerage currently has a "buy" rating on the stock. Desjardins' price target would indicate a potential upside of 18.79% from the stock's previous close.

A number of other research analysts also recently weighed in on DOL. Jefferies Financial Group cut their price target on shares of Dollarama from C$235.00 to C$200.00 in a report on Wednesday. Sanford C. Bernstein lifted their target price on Dollarama from C$223.00 to C$232.00 in a report on Friday, December 12th. Stifel Nicolaus decreased their target price on shares of Dollarama from C$200.00 to C$180.00 and set a "hold" rating for the company in a research report on Wednesday. BMO Capital Markets upped their target price on shares of Dollarama from C$215.00 to C$222.00 in a report on Wednesday, December 3rd. Finally, TD Securities decreased their price objective on shares of Dollarama from C$235.00 to C$225.00 and set a "buy" rating on the stock in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of C$202.92.

Dollarama Price Performance

TSE:DOL traded up C$3.91 during mid-day trading on Wednesday, hitting C$172.57. 678,619 shares of the company's stock traded hands, compared to its average volume of 693,436. The company has a market cap of C$47.21 billion, a PE ratio of 36.72, a price-to-earnings-growth ratio of 1.93 and a beta of 0.15. The firm's 50 day simple moving average is C$192.58 and its 200 day simple moving average is C$192.11. Dollarama has a 1 year low of C$147.00 and a 1 year high of C$209.96. The company has a debt-to-equity ratio of 415.13, a quick ratio of 0.08 and a current ratio of 1.09.

Dollarama (TSE:DOL - Get Free Report) last released its quarterly earnings data on Tuesday, March 24th. The company reported C$1.43 earnings per share (EPS) for the quarter. Dollarama had a net margin of 18.59% and a return on equity of 99.41%. The company had revenue of C$2.10 billion during the quarter. Sell-side analysts expect that Dollarama will post 5.3295203 EPS for the current year.

Dollarama News Roundup

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Strong quarterly profitability — Q4 EPS of C$1.43 and C$2.10B in revenue, with rising profit margins and high ROE, reinforce Dollarama’s cash generation and margin resilience. MarketBeat Earnings
• Positive Sentiment: Higher basket size offset weaker traffic in Q4, showing customer spend per trip rose — supports near‑term earnings despite softer footfall. MarketWatch: 4Q Profit
• Neutral Sentiment: Conference‑call and slide deck available — management detailed results and drivers, useful for assessing whether cost control and assortments can sustain margins under slower top‑line growth. Yahoo Finance: Call Highlights
• Negative Sentiment: Management guided annual sales largely below Street estimates and said global outlooks are “cautious,” which directly pressures growth expectations and future valuation multiples. BNNBloomberg: Forecasts Below Estimates
• Negative Sentiment: Same‑store sales missed expectations, prompting headlines that the stock was pressured after the print — investors worry this signals cooling demand among value shoppers. BNNBloomberg: Same‑Store Sales Miss
• Negative Sentiment: CEO says price increases will be passed to customers only “where absolutely necessary,” signaling management’s reluctance to fully offset cost pressures via pricing — could limit margin upside if input costs rise. Pique News
• Negative Sentiment: Market reaction included an initial sharp drop despite the strong profit print, underscoring that guidance and traffic trends drove the dominant investor response. Blockonomi: Stock Drop Coverage

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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