Stifel Canada on Thursday reiterated its hold rating on the shares of Dollarama (DOL.TO) while raising its price target to C$190.00 from C$162.50 following fiscal first-quarter results from the discount retailer.
"Dollarama reported strong Q1FY26 results, exceeding expectations across key metrics. Same-store sales growth came in better than expected, gross margin expanded Y/Y, and Dollarcity delivered an impressive performance. With Dollarcity's imminent entry into Mexico and progress on The Reject Shop acquisition, Dollarama's growth avenues are appealing. However, the stock is trading at an all-time high valuation of 37x forward earnings, roughly 12 turns higher than the 10-year average. As such, while we expect operational momentum to continue, we view the shares as priced for perfection, with limited room for further multiple expansion. We maintain our HOLD rating and raise our target price by $27.50 to $190.00," analyst Martin Landry wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 193.13, Change: +0.14, Percent Change: +0.07
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