Maintaining a Buy: Short-Term Volatility vs. Long-Term International Growth Runway

TD Cowen analyst Brian Morrison has maintained their bullish stance on DLMAF stock, giving a Buy rating today.

Brian Morrison has given his Buy rating due to a combination of factors that, in his view, still support an attractive long‑term story despite recent share weakness. He notes that Q4/F26 earnings were essentially in line once one adjusts for the Australian contribution, and he views the softer Canadian same‑store sales as largely timing‑ and weather‑driven rather than a structural deterioration, with management expecting a recovery to normal growth trends.

He also highlights Dollarcity’s strong performance and cash generation, which is sufficient to support Mexico’s expansion and underpins the broader growth platform. While he acknowledges that conservative guidance, premium valuation, and temporary costs tied to the Australian transformation create forecasting complexity and near‑term volatility, he sees those integration costs as short‑lived and believes the international growth runway and resilient value proposition justify maintaining a Buy rating.

In another report released today, Desjardins also maintained a Buy rating on the stock with a C$205.00 price target.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DLMAF in relation to earlier this year.