Dollarama, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Etienne Ricard from BMO Capital maintained a Buy rating on the stock and has a C$215.00 price target.
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Etienne Ricard has given his Buy rating due to a combination of factors that highlight Dollarama’s strong position in the Canadian retail market. Despite a cautious consumer environment, Dollarama has managed to exceed expectations, particularly in its same-store sales performance, which is expected to reach the high end of the company’s guidance range. This resilience is attributed to Dollarama’s ability to navigate inconsistent consumer behavior and maintain robust sales figures.
Additionally, the company’s international expansion through Dollarcity has shown impressive growth, with significant sales and earnings increases driven by store count growth and margin improvements. The ongoing transformation of The Reject Shop, with plans to expand its store network and integrate Dollarama products, further supports the company’s growth strategy. These factors, combined with Dollarama’s competitive advantages and strategic initiatives, underpin Ricard’s positive outlook and Buy rating for the stock.
In another report released on August 25, RBC Capital also reiterated a Buy rating on the stock with a C$212.00 price target.
DLMAF’s price has also changed moderately for the past six months – from $103.640 to $133.090, which is a 28.42% increase.