Canadian Imperial Bank of Commerce Forecasts Strong Price Appreciation for Dollarama (TSE:DOL) Stock

Dollarama (TSE:DOL) had its target price increased by research analysts at Canadian Imperial Bank of Commerce from C$202.00 to C$228.00 in a report issued on Friday,BayStreet.CA reports. Canadian Imperial Bank of Commerce’s price target points to a potential upside of 18.76% from the company’s previous close.

A number of other equities analysts have also commented on the company. Royal Bank Of Canada set a C$223.00 price objective on Dollarama and gave the stock an “outperform” rating in a research note on Thursday, June 4th. UBS Group dropped their price objective on Dollarama from C$210.00 to C$191.00 in a research note on Wednesday, March 25th. Desjardins dropped their price objective on Dollarama from C$218.00 to C$205.00 and set a “buy” rating on the stock in a research note on Wednesday, March 25th. Scotiabank dropped their price objective on Dollarama from C$220.00 to C$200.00 in a research note on Wednesday, March 25th. Finally, Canaccord Genuity Group boosted their price target on Dollarama from C$187.00 to C$204.00 in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Dollarama has a consensus rating of “Moderate Buy” and a consensus price target of C$216.00.

Dollarama Stock Down 1.9%

TSE DOL traded down C$3.78 during trading on Friday, hitting C$191.98. 429,075 shares of the company traded hands, compared to its average volume of 715,527. Dollarama has a 12 month low of C$166.00 and a 12 month high of C$209.96. The business has a fifty day simple moving average of C$174.77 and a 200 day simple moving average of C$187.83. The company has a current ratio of 1.13, a quick ratio of 0.08 and a debt-to-equity ratio of 370.61. The company has a market capitalization of C$52.26 billion, a P/E ratio of 40.59, a PEG ratio of 1.93 and a beta of 0.37.

Dollarama (TSE:DOL) last posted its quarterly earnings data on Thursday, June 11th. The company reported C$1.11 EPS for the quarter. The business had revenue of C$1.85 billion for the quarter. Dollarama had a return on equity of 94.71% and a net margin of 18.05%. As a group, sell-side analysts predict that Dollarama will post 5.3295203 EPS for the current year.

Key Headlines Impacting Dollarama

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Dollarama topped quarterly estimates, reporting C$1.11 EPS on revenue of C$1.85 billion, with management and media reports pointing to strong same-store sales and broad-based demand for budget essentials. Dollarama tops quarterly estimates on steady demand for low-priced essentials
• Positive Sentiment: Sales surged more than 20% year over year, reinforcing the view that Dollarama is benefiting from weakening consumer confidence and demand for value-priced goods. Dollarama sales surge over 20% amid weakening consumer confidence
• Positive Sentiment: Market commentary said Dollarama helped lift the TSX, indicating investors viewed the results as a positive read-through for the stock and for broader Canadian equities. TSX rises to one-week high as Dollarama leads broad-based gains
• Neutral Sentiment: In the earnings call and transcript, management described the quarter as “smooth” but flagged monitoring for potential supply-chain and geopolitical impacts, including risks tied to the Iran war. Dollarama has smooth Q1, bracing for impacts of Iran war: CFO
• Neutral Sentiment: Analysts had already expected a strong quarter on same-store sales momentum, so part of the move may reflect confirmation of expectations rather than a new surprise. Dollarama 1Q Rev Seen Higher on Same-Store Sales Momentum — Earnings Preview

Dollarama Company Profile

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company’s product offerings. The company’s stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.