Dollarama (OTCMKTS:DLMAF) Stock Rating Upgraded by Wells Fargo & Company

Key Points

• Analyst sentiment has shifted positive: Several firms including CIBC, TD, National Bank and Jefferies upgraded Dollarama to "strong-buy" while Wells Fargo moved to "hold," leaving a MarketBeat consensus rating of "Buy" (six Strong Buy, three Buy, three Hold).
• Quarterly results were mixed: Dollarama posted $1.03 EPS (beat by $0.01) but revenue of $1.51B marginally missed estimates, with profitability remaining strong (net margin ~18%, ROE ~96.6%).
• Valuation and leverage are key risks: The stock trades at a rich P/E (~145) with a high debt-to-equity ratio (3.55), which could amplify downside if growth or traffic softens.

Dollarama (OTCMKTS:DLMAF - Get Free Report) was upgraded by analysts at Wells Fargo & Company to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

DLMAF has been the subject of several other reports. Zacks Research raised shares of Dollarama to a "hold" rating in a report on Monday, March 16th. Canadian Imperial Bank of Commerce raised Dollarama to a "strong-buy" rating in a research note on Wednesday. TD Securities raised Dollarama to a "strong-buy" rating in a report on Wednesday. Stifel Nicolaus upgraded Dollarama to a "hold" rating in a research note on Tuesday. Finally, National Bank Financial raised Dollarama to a "strong-buy" rating in a report on Wednesday. Six analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy".

Dollarama Stock Performance

OTCMKTS:DLMAF opened at $121.96 on Tuesday. The company has a debt-to-equity ratio of 3.55, a current ratio of 1.09 and a quick ratio of 0.23. The firm has a market cap of $33.29 billion and a price-to-earnings ratio of 145.19. The firm's fifty day moving average price is $140.04 and its 200 day moving average price is $138.81. Dollarama has a 1-year low of $104.40 and a 1-year high of $160.86.

Dollarama (OTCMKTS:DLMAF - Get Free Report) last released its earnings results on Tuesday, March 24th. The company reported $1.03 EPS for the quarter, topping the consensus estimate of $1.02 by $0.01. The company had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.52 billion. Dollarama had a net margin of 18.05% and a return on equity of 96.58%.

Key Dollarama News

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Canadian Imperial Bank of Commerce upgraded Dollarama to "strong-buy," signaling increased analyst conviction in the company's outlook. Zacks.com
• Positive Sentiment: TD Securities also raised its rating to "strong-buy," adding another institutional endorsement that could support demand for the shares. Zacks.com
• Positive Sentiment: National Bank Financial upgraded Dollarama to "strong-buy," reinforcing a broader, same-day shift among Canadian brokers toward a bullish stance. Zacks.com TickerReport
• Positive Sentiment: Jefferies Financial Group upgraded the stock to "strong-buy," joining the cluster of upgrades that may reflect improving analyst views on margins, cash flow or market positioning. Zacks.com TickerReport
• Neutral Sentiment: Quarterly results were mixed: Dollarama reported $1.03 EPS (in line with consensus) but revenue of $1.51B slightly missed estimates of $1.52B. Profitability metrics remain strong (net margin ~18%, ROE high), so earnings neither surprised positively nor materially worsened the story. MarketBeat
• Negative Sentiment: Despite the analyst upgrades, the stock is under pressure—partly because the quarter's revenue shortfall is a reminder of sensitivity to traffic and consumption trends, and the shares trade with a rich P/E and leverage profile that can amplify downside risk if growth softens. (Background price/metrics cited by market summaries.)

About Dollarama

Dollarama Inc operates as a leading Canadian dollar store chain, offering a variety of everyday consumer goods at fixed price points. The company’s retail format emphasizes value and convenience, providing a one-stop shopping experience for cost-conscious customers. Merchandise spans multiple categories, including household items, food and consumables, health and beauty products, stationery, seasonal and party supplies, and toys.

Founded in 1992 by Laurent “Larry” Rossy, Dollarama opened its first location in Montreal, Quebec.

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