Zhihan Ma, an analyst from Bernstein, has initiated a new Buy rating on Dollarama (DLMAF).
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Zhihan Ma has given his Buy rating due to a combination of factors that highlight Dollarama’s strong market position and growth potential. Dollarama is characterized by its efficient operations and high productivity, which distinguish it from typical American dollar stores. The company enjoys impressive margins and sales productivity, which contribute to its robust financial performance.
Furthermore, despite Dollarama’s high valuation, Zhihan Ma sees potential for growth as the company expands into international markets with minimal competition. The existing business in Canada and its investment in Dollarcity in Latin America have shown exceptional growth and returns, justifying a premium valuation. Additionally, the potential for expansion into new markets such as Mexico and Australia presents further growth opportunities, which are not fully reflected in the current stock price, leading to the Buy recommendation.
In another report released on September 10, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$212.00 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DLMAF in relation to earlier this year.