Dollarama (OTCMKTS:DLMAF) Upgraded by UBS Group to Hold Rating

Key Points

• UBS Group upgraded Dollarama (DLMAF) to a Hold, while multiple other brokers (including National Bank, Jefferies and RBC) have raised ratings recently, leaving MarketBeat's consensus at a Buy.
• Shares are down ~1.8% and trade below their 50‑ and 200‑day moving averages with a high P/E (~142.6), indicating valuation concerns despite the upgrades.
• In the latest quarter Dollarama reported EPS of $1.03 (beating estimates by $0.01) and revenue of $1.51B (slightly below estimates), with strong profitability metrics (ROE ~96.6%, net margin ~18%).

Dollarama (OTCMKTS:DLMAF - Get Free Report) was upgraded by equities research analysts at UBS Group to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other brokerages have also recently weighed in on DLMAF. Canaccord Genuity Group upgraded Dollarama to a "hold" rating in a research report on Tuesday. Stifel Nicolaus raised shares of Dollarama to a "hold" rating in a research note on Tuesday. National Bank Financial raised shares of Dollarama to a "strong-buy" rating in a research note on Wednesday. Royal Bank Of Canada upgraded shares of Dollarama to a "moderate buy" rating in a report on Monday, March 16th. Finally, Jefferies Financial Group upgraded shares of Dollarama to a "strong-buy" rating in a research report on Wednesday. Six analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Buy".

Dollarama Stock Down 1.8%

Shares of OTCMKTS:DLMAF opened at $119.82 on Wednesday. The company has a market cap of $32.70 billion and a price-to-earnings ratio of 142.64. The firm's 50-day simple moving average is $139.60 and its 200-day simple moving average is $138.70. The company has a quick ratio of 0.23, a current ratio of 1.09 and a debt-to-equity ratio of 3.55. Dollarama has a fifty-two week low of $104.40 and a fifty-two week high of $160.86.

Dollarama (OTCMKTS:DLMAF - Get Free Report) last announced its quarterly earnings data on Tuesday, March 24th. The company reported $1.03 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.01. Dollarama had a return on equity of 96.58% and a net margin of 18.05%.The firm had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.52 billion.

Dollarama News Summary

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Multiple brokers upgraded Dollarama to "strong‑buy" (TD Securities, CIBC, National Bank Financial, Jefferies [upgrade], BMO, Scotiabank) over Mar 26–27 — this reflects continued analyst conviction in Dollarama's resilient cash flows and franchise strength. Jefferies Upgrade National Bank Upgrade BMO Upgrade
• Positive Sentiment: Jefferies also publicly reaffirmed a Buy rating on Dollarama, reinforcing that at least some sell‑side analysts expect continued growth and margin durability. Jefferies Reaffirms Buy
• Neutral Sentiment: Some firms (Stifel Nicolaus, Wells Fargo) moved ratings to "hold" — a modestly less bullish stance that suggests caution from parts of the street even as others push higher. Stifel Note
• Neutral Sentiment: Press coverage notes conflicting analyst views on consumer names including Dollarama, signaling mixed sentiment across the market rather than a unanimous call. Globe: Conflicting Sentiments
• Negative Sentiment: Despite the upgrades, the shares are trading below their 50‑ and 200‑day moving averages and carry a high P/E (around 143), which can limit upside and help explain the share decline amid profit‑taking or valuation concerns. Valuation/Market Context

Dollarama Company Profile

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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