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Dollarama initiated with an Outperform at Bernstein

Bernstein initiated coverage of Dollarama (DLMAF) with an Outperform rating and C$220 price target The firm calls the stock “Canada’s Costco but at a cheaper valuation”, with clean and well stocked, appeal to all income cohorts, and 50% more productivity than U.S. dollar banners, the analyst tells investors in a research note. Dollarama is trading at a nearly all time high valuation, but the firm sees more upside as the company expands into untapped international markets with little competition, Bernstein added.

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