Scotiabank Lowers Dollarama (TSE:DOL) Price Target to C$200.00

Key Points

• Scotiabank cut its price target on Dollarama from C$220 to C$200 (about a 15.89% upside), and multiple brokers trimmed targets leaving a MarketBeat consensus of Moderate Buy with an average target of C$202.92.
• Dollarama posted strong Q4 results — EPS C$1.43, revenue C$2.10B, 99.41% ROE and 18.59% net margin — but management’s cautious annual sales guidance and a same‑store sales miss pressured the stock and investor sentiment.

Dollarama (TSE:DOL - Get Free Report) had its price objective cut by equities researchers at Scotiabank from C$220.00 to C$200.00 in a report released on Wednesday,BayStreet.CA reports. Scotiabank's price objective points to a potential upside of 15.89% from the company's previous close.

A number of other analysts have also recently commented on DOL. Royal Bank Of Canada cut their target price on Dollarama from C$225.00 to C$223.00 in a research report on Wednesday. Stifel Nicolaus dropped their price target on Dollarama from C$200.00 to C$180.00 and set a "hold" rating on the stock in a research note on Wednesday. Jefferies Financial Group cut their price target on Dollarama from C$235.00 to C$200.00 in a research report on Wednesday. TD Securities reduced 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. Finally, Desjardins decreased their price objective on Dollarama from C$218.00 to C$205.00 and set a "buy" rating for the company in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Dollarama currently has a consensus rating of "Moderate Buy" and an average target price of C$202.92.

Dollarama Stock Up 2.3%

Shares of DOL traded up C$3.91 during midday trading on Wednesday, reaching C$172.57. The stock had a trading volume of 678,619 shares, compared to its average volume of 693,436. 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 current ratio of 1.09 and a quick ratio of 0.08. The company has a market cap of C$47.21 billion, a price-to-earnings ratio of 36.72, a PEG ratio of 1.93 and a beta of 0.15. The company's fifty day simple moving average is C$192.58 and its two-hundred day simple moving average is C$192.11.

Dollarama (TSE:DOL - Get Free Report) last released 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 99.41% and a net margin of 18.59%.The business had revenue of C$2.10 billion for the quarter. Equities research analysts expect that Dollarama will post 5.3295203 earnings per share for the current year.

Key Dollarama News

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

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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