12:45 PM EDT, 06/12/2024 (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 lift our 12-month target to CAD130 from CAD116, 30.2x our FY 26 (Jan.) EPS of CAD4.31 (up from CAD4.19; FY 25's up to CAD3.94 from CAD3.85) vs. the 28x long-term mean. FQ1 (Apr-Q) EPS of CAD0.77 (+23% Y/Y) beat by CAD0.02. However, same-store sales growth of 5.6% slightly missed the 5.7% consensus. Traffic grew 8.7%, but the average transaction amount fell 2.8%. Gross margin grew 100 bps Y/Y to 43.2%. DOL also announced today that it has increased its stake in Dollarcity to 60.1% from 50.1% by issuing 6.1M shares for about USD554M. DOL now sees 1,050 Dollarcity stores by 2031, up from 850 stores by 2029 (current count is 547 stores). This long-term target does not include stores in Mexico, which Dollarcity plans to enter in 2026. Our Hold view reflects DOL's rich valuation. Yet, we believe DOL's premium can hold, given its industry-leading margin profile and robust long-term expansion plans. DOL is also immune to some of the macro headwinds facing U.S.-based discounters (e.g., shrink isn't a major problem).