Dollarama Inc. (TSE:DOL) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give Dollarama a consensus recommendation of Moderate Buy, based on 10 firms (6 buy, 3 hold, 1 strong buy) with an average 1-year target of C$202.92.
• Several brokers cut their price targets on March 25 (e.g., Scotiabank to C$200, Canaccord to C$187, TD to C$225, National Bank to C$198, Jefferies to C$200), signaling recent downward revisions to expectations.
• Shares opened at C$176.82 with a market cap of C$48.22B and a PE of 37.38; Dollarama reported quarterly EPS of C$1.43 on C$2.10B revenue and declared a quarterly dividend of $0.12 (annual $0.48, yield 0.3%, ex-dividend April 17).

Dollarama Inc. (TSE:DOL - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the ten research firms that are presently covering the company, Marketbeat reports. Three research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is C$202.92.

A number of equities analysts have recently issued reports on the company. Scotiabank dropped their price target on Dollarama from C$220.00 to C$200.00 in a research report on Wednesday, March 25th. Canaccord Genuity Group decreased their price objective on Dollarama from C$207.00 to C$187.00 in a research note on Wednesday, March 25th. TD Securities decreased their price objective on Dollarama from C$235.00 to C$225.00 and set a "buy" rating for the company in a research note on Wednesday, March 25th. National Bank Financial decreased their price objective on Dollarama from C$225.00 to C$198.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Finally, Jefferies Financial Group decreased their price objective on Dollarama from C$235.00 to C$200.00 in a research note on Wednesday, March 25th.

Dollarama Stock Performance

Shares of Dollarama stock opened at C$176.82 on Friday. The stock's fifty day moving average is C$187.43 and its two-hundred day moving average is C$190.58. The company has a market capitalization of C$48.22 billion, a PE ratio of 37.38, a price-to-earnings-growth ratio of 1.93 and a beta of 0.47. The company has a quick ratio of 0.08, a current ratio of 1.13 and a debt-to-equity ratio of 370.61. Dollarama has a 52 week low of C$154.40 and a 52 week high of C$209.96.

Dollarama (TSE:DOL - Get Free Report) last announced its quarterly earnings data on Tuesday, March 24th. The company reported C$1.43 EPS for the quarter. Dollarama had a return on equity of 94.71% and a net margin of 18.05%.The company had revenue of C$2.10 billion for the quarter. As a group, analysts expect that Dollarama will post 5.3295203 earnings per share for the current year.

Dollarama Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Friday, May 8th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date is Friday, April 17th. Dollarama's dividend payout ratio is 8.95%.

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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