Analyst Coverage Change
Scotia Capital(Rank#16), a leading investment bank in Canada, recently issued a research note on Dollarama, maintaining an Outperform rating with a target price of CAD 93. This is a positive signal for investors as it suggests that Scotia Capital expects the stock to outperform the market over the coming months.
The research note may be particularly significant given the current market environment, which has been characterized by high volatility and uncertainty. Investors have been grappling with a number of challenges, including concerns over inflation, the impact of COVID-19, and geopolitical tensions.
Despite these challenges, Scotia Capital remains bullish on the potential of the company in question. The bank’s analysts likely conducted a thorough analysis of the company’s financial performance, growth prospects, and industry trends, among other factors, to arrive at their assessment.
It is worth noting that Scotia Capital is a well-respected institution with a long history of providing high-quality research to investors. As such, its views on the company in question may carry significant weight among investors.
The decision to maintain an Outperform rating and set a target price of CAD 93 suggests that Scotia Capital sees significant upside potential in the stock. This may be due to a number of factors, such as strong revenue growth, expanding margins, and innovative cost-attractive product portfolio.
DOL Stock Forecast & Analysis
According to recent forecasts from 11 analysts, the average target price for Dollarama Inc. is CAD 87.57 over the next 12 months. This represents a significant potential upside of around 12.3% from the current price of CAD 77.99.
The average analyst rating for Dollarama Inc. is Strong Buy, indicating a high level of confidence among industry experts in the company’s future performance. The positive rating is likely due to Dollarama’s strong track record of growth and profitability, as well as its resilience in the face of economic uncertainty.
In addition to the analysts’ forecasts, Stock Target Advisor has conducted its own analysis of Dollarama Inc. and rated it as Very Bullish. This rating is based on 17 positive signals and only one negative signal, indicating a strong bullish sentiment in the market towards Dollarama’s stock.
One factor contributing to this bullish sentiment may be Dollarama’s recent financial results. In its most recent quarter, the company reported strong revenue growth of 14.7% year-over-year, as well as an increase in net earnings of 33.9%. This growth was driven by strong sales performance across its stores, as well as the expansion of its e-commerce platform.
Over the past year, Dollarama’s stock price has increased by over 13%, demonstrating the company’s resilience and ability to navigate the challenges of the pandemic. However, over the past month, the stock has declined slightly by 0.88%, while over the past week it has increased by 2.96%.
The positive analyst forecasts and bullish sentiment towards Dollarama’s stock suggest that the company is well-positioned for future growth and profitability.