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Research Alert: CFRA Keeps Buy Opinion On Shares Of Dollarama, Inc.
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Research Alert: CFRA Keeps Buy Opinion On Shares Of Dollarama, Inc.
Jun 11, 2025 10:06 PM

12:30 AM EDT, 06/12/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to CAD213 from CAD184, based on 40x our FY 27 (Jan.) EPS estimate of CAD5.33 (up from CAD5.26; FY 26 unchanged at CAD4.70). This multiple is well above the company's long-term average of about 28x, which we believe is justified by its industry-leading comparable sales growth and margin profile. We also see a long unit growth runway at both Dollarama ( DLMAF ) (across Canada) and Dollarcity (across Latin America, with plans to enter Mexico imminently). With the TRS acquisition likely closing in the coming months, DOL will soon gain entry into a new market (Australia). FQ1 (Apr-Q) results were strong, in our view, and we believe DOL can sustain this momentum as it continues to execute its long-term strategy. We see continued upside in the Dollarcity investment, supported by new store openings, robust same-store sales growth, and margin expansion potential. We also believe tariff risks are manageable given DOL's multi-price strategy and broad sourcing network.

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