09:35 AM EDT, 04/05/2024 (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 raise our 12-month target to CAD116 from CAD102, 30.1x our FY 25 (Jan.) EPS of CAD3.85 (up from CAD3.78; we set FY 26 at CAD4.19) vs. a 27x five-year average forward P/E. F4Q (Jan-Q) EPS of CAD1.15 (+27% Y/Y) beat by CAD0.10. Same-store sales grew 8.7%, above the 5.6% consensus, driven by 11.2% growth in transactions, but a 2.2% decline in average transaction amount. Average transaction amount decreased for the first time since F2Q 2023, a sign that consumers are shopping more frequently but putting fewer items in their basket during each trip. Gross margin grew a solid 170 bps Y/Y to 46.3%, driven by lower shipping and logistics costs. Dollarcity net earnings grew 22% Y/Y to CAD33 million, as DOL seems to be making good progress in improving the profitability of its relatively new store base in this region. Dollarcity now has 532 stores, up from 440 stores last year, with 311 locations in Colombia, 99 in Guatemala, 72 in El Salvador, and 50 in Peru. Our Hold opinion is based on DOL's rich valuation.