Dollarama Inc. (DOL:CA) (DLMAF)
Bernstein raised its 12 month target to C$223 from C$220, reflecting continued confidence in Dollarama’s resilient consumer demand and margin expansion despite a challenging retail environment.
Analysts highlighted Dollarama’s consistent same-store sales growth and strong traffic trends, driven by its value-focused merchandise mix and ability to attract cost-conscious consumers amid inflationary pressures. Bernstein noted that the company’s strategic pricing discipline, coupled with efficient supply chain management, has supported gross margin improvement and sustained profitability.
The firm also pointed to Dollarama’s expanding store network, both domestically and through its stake in Dollarcity, which is fueling international growth across Latin America. The company is also adding investments in automation and distribution capacity, which are expected to enhance operational efficiency and reduce logistics costs over time.
Bernstein maintains a bullish outlook, citing Dollarama’s proven ability to deliver steady earnings growth and cash generation, positioning it as one of the most defensive and high-performing names in the Canadian retail sector.
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