Canaccord Genuity Group Forecasts Strong Price Appreciation for Dollarama (TSE:DOL) Stock

Dollarama (TSE:DOL) had its price target increased by research analysts at Canaccord Genuity Group from C$187.00 to C$204.00 in a report issued on Friday,BayStreet.CA reports. Canaccord Genuity Group’s target price points to a potential upside of 6.26% from the company’s current price.

DOL has been the subject of a number of other reports. Wells Fargo & Company decreased their price objective on Dollarama from C$195.00 to C$185.00 in a research report 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 report on Wednesday, March 25th. Scotiabank cut their price target on shares of Dollarama from C$220.00 to C$200.00 in a report on Wednesday, March 25th. Canadian Imperial Bank of Commerce upgraded Dollarama from a “hold” rating to an “outperform” rating and dropped their target price for the stock from C$212.00 to C$202.00 in a research report on Wednesday, March 25th. Finally, Sanford C. Bernstein decreased their price target on Dollarama from C$232.00 to C$227.00 in a research note on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of C$216.00.

Dollarama Stock Performance

TSE:DOL traded down C$3.78 during mid-day trading on Friday, reaching C$191.98. 429,075 shares of the stock were exchanged, compared to its average volume of 715,527. The company has a 50 day simple moving average of C$174.77 and a 200-day simple moving average of C$187.83. The stock has a market capitalization of C$52.26 billion, a P/E ratio of 40.59, a P/E/G ratio of 1.93 and a beta of 0.37. 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 1 year low of C$166.00 and a 1 year high of C$209.96.

Dollarama (TSE:DOL) last released its quarterly earnings results on Thursday, June 11th. The company reported C$1.11 earnings per share (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 for the quarter. Analysts anticipate that Dollarama will post 5.3295203 earnings per share for the current fiscal year.

Key Stories Impacting Dollarama

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.