UBS Group Cuts Dollarama (TSE:DOL) Price Target to C$190.00

Dollarama (TSE:DOL) had its price target trimmed by UBS Group from C$202.00 to C$190.00 in a research report sent to investors on Monday,BayStreet reports.

A number of other equities analysts also recently commented on the stock. Bank of America set a C$220.00 target price on shares of Dollarama and gave the stock a “buy” rating in a report on Friday, June 12th. BMO Capital Markets raised their price target on shares of Dollarama from C$210.00 to C$221.00 in a report on Friday, June 12th. Scotiabank lifted their price objective on shares of Dollarama from C$200.00 to C$220.00 in a research report on Friday, June 12th. National Bank Financial boosted their price objective on shares of Dollarama from C$203.00 to C$209.00 in a research note on Friday, June 12th. Finally, Canaccord Genuity Group increased their target price on shares of Dollarama from C$187.00 to C$204.00 in a research report on Friday, June 12th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Dollarama currently has a consensus rating of “Moderate Buy” and an average price target of C$216.50.

Dollarama Trading Up 5.5%

Shares of TSE:DOL opened at C$174.56 on Monday. The company has a market capitalization of C$47.27 billion, a PE ratio of 35.92, a P/E/G ratio of 1.93 and a beta of 0.26. The company has a current ratio of 1.57, a quick ratio of 0.08 and a debt-to-equity ratio of 451.20. Dollarama has a 12-month low of C$163.25 and a 12-month high of C$209.96. The business’s fifty day simple moving average is C$183.81 and its 200-day simple moving average is C$181.89.

Dollarama (TSE:DOL) last issued its quarterly earnings data on Wednesday, September 16th. The company reported C$1.29 earnings per share for the quarter. Dollarama had a return on equity of 95.90% and a net margin of 17.65%.The firm had revenue of C$2.03 billion during the quarter. As a group, equities research analysts predict that Dollarama will post 5.3295203 earnings per share for the current fiscal year.

Dollarama Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, August 7th were paid a dividend of $0.12 per share. The ex-dividend date was Friday, July 10th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.3%. Dollarama’s payout ratio is presently 9.00%.

Key Stories Impacting Dollarama

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Dollarama reported second-quarter revenue of approximately C$2.03 billion, up 17.6% year over year, while EPS increased 11% to C$1.29. The results exceeded expectations and reinforced the company’s resilient sales momentum. Dollarama Q2 EPS up 11%
• Positive Sentiment: Management raised its annual sales-growth forecast for the Canadian business as shoppers make more careful spending decisions and trade down to value-priced products. This improves the near-term growth outlook and was the main catalyst for the stock’s advance. Dollarama raises sales-growth outlook
• Positive Sentiment: The company said demand remains broad-based, including consumables, while its low-price format continues to attract consumers affected by inflation. Analysts and market coverage viewed the earnings and revised outlook favorably. Dollarama expects higher sales
• Neutral Sentiment: Dollarama executives discussed tariffs and the company’s C$5 price cap. The cap supports the value proposition, but tariffs could increase merchandise costs and complicate future pricing decisions. Dollarama executives on tariffs and pricing
• Negative Sentiment: Some reports highlighted compressed profit margins, partly linked to Dollarama’s Australian operations. This offsets some of the benefit from strong Canadian sales and could keep investors focused on profitability as well as revenue growth. Australian operations weigh on margins
• Negative Sentiment: UBS issued a pessimistic price forecast, signaling valuation concerns after Dollarama’s substantial long-term gains. With the shares still trading at a premium earnings multiple, analyst caution may limit further upside despite the strong quarter. UBS forecast for Dollarama

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.