BMO Capital analyst Etienne Ricard maintained a Buy rating on Dollarama yesterday and set a price target of C$222.00.
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Etienne Ricard has given his Buy rating due to a combination of factors that highlight Dollarama’s strong performance and growth potential. The company has shown improving seasonal sales trends, particularly in Q3, which are expected to continue into Q4, supporting a positive outlook for same-store sales in Canada. This, combined with the benefits of operating leverage and contributions from Dollarcity, positions Dollarama for low-teens earnings growth.
Additionally, Ricard notes that Dollarcity has achieved significant earnings growth, and the expansion into Mexico is progressing well, with expectations of breakeven post-fiscal 2027. Although the Australian market is in a heavy investment phase, it is anticipated to align with Dollarama’s value proposition in the coming years. Overall, Dollarama’s competitive advantages and strategic growth initiatives underpin the Buy rating, with a target price maintained at $222.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$225.00 price target.
Based on the recent corporate insider activity of 22 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.