02:03 PM EDT, 09/03/2024 (MT Newswires) -- Dollarama ( DLMAF ) reports second quarter results on September 11 before market.

SSS will be the focus for BMO. Analyst Tamy Chen continues to forecast 4.5% for the second quarter (Mean is 4.7%).

She adds that "two consecutive quarters of lower y/y basket size but higher y/y traffic is interesting and has us wondering if DOL's seasonal discretionary products could be seeing slightly softer demand."

Chen continue to like the fundamentals medium-term but notes that near-term, valuation has increased materially to 20x F2026 EBITDA from 16-19x previously.

Dollarama ( DLMAF ) is rated Outperform, with a $138 target.

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