Dollarama (TSE:DOL) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Dollarama (TSE:DOL) had its price objective raised by equities researchers at BMO Capital Markets from C$210.00 to C$221.00 in a research report issued to clients and investors on Friday,BayStreet.CA reports. BMO Capital Markets’ price target suggests a potential upside of 15.12% from the company’s current price.

DOL has been the topic of several other research reports. TD Securities reduced their price target on Dollarama from C$235.00 to C$225.00 and set a “buy” rating on the stock in a report on Wednesday, March 25th. Canadian Imperial Bank of Commerce upgraded Dollarama from a “hold” rating to an “outperform” rating and reduced their price target for the stock from C$212.00 to C$202.00 in a report on Wednesday, March 25th. Scotiabank reduced their price target on Dollarama from C$220.00 to C$200.00 in a report on Wednesday, March 25th. Stifel Nicolaus upgraded Dollarama from a “hold” rating to a “buy” rating and lifted their price target for the stock from C$180.00 to C$190.00 in a report on Tuesday, May 5th. Finally, Canaccord Genuity Group reduced their price target on Dollarama from C$207.00 to C$187.00 in a report on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of C$216.00.

Dollarama Price Performance

Shares of DOL traded down C$3.78 during trading hours on Friday, hitting C$191.98. 429,075 shares of the stock were exchanged, compared to its average volume of 715,527. The company has a debt-to-equity ratio of 370.61, a quick ratio of 0.08 and a current ratio of 1.13. Dollarama has a 12-month low of C$166.00 and a 12-month high of C$209.96. The company has a market cap of C$52.26 billion, a price-to-earnings ratio of 40.59, a price-to-earnings-growth ratio of 1.93 and a beta of 0.37. The stock’s 50-day moving average price is C$174.77 and its two-hundred day moving average price is C$187.83.

Dollarama (TSE:DOL) last issued its quarterly earnings results on Thursday, June 11th. The company reported C$1.11 EPS for the quarter. Dollarama had a return on equity of 94.71% and a net margin of 18.05%.The firm had revenue of C$1.85 billion during the quarter. 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: Dollarama topped quarterly estimates, reporting C$1.11 EPS on revenue of C$1.85 billion, with management and media reports pointing to strong same-store sales and broad-based demand for budget essentials. Dollarama tops quarterly estimates on steady demand for low-priced essentials
• Positive Sentiment: Sales surged more than 20% year over year, reinforcing the view that Dollarama is benefiting from weakening consumer confidence and demand for value-priced goods. Dollarama sales surge over 20% amid weakening consumer confidence
• Positive Sentiment: Market commentary said Dollarama helped lift the TSX, indicating investors viewed the results as a positive read-through for the stock and for broader Canadian equities. TSX rises to one-week high as Dollarama leads broad-based gains
• Neutral Sentiment: In the earnings call and transcript, management described the quarter as “smooth” but flagged monitoring for potential supply-chain and geopolitical impacts, including risks tied to the Iran war. Dollarama has smooth Q1, bracing for impacts of Iran war: CFO
• Neutral Sentiment: Analysts had already expected a strong quarter on same-store sales momentum, so part of the move may reflect confirmation of expectations rather than a new surprise. Dollarama 1Q Rev Seen Higher on Same-Store Sales Momentum — Earnings Preview

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.