Desjardins raised its price target on Dollarama Inc. (DOL.TO) to $218 from $205.
Analyst Chris Li maintained a Buy rating on shares of the Canadian dollar store retail chain ahead of its fiscal Q3 2026 results on December 11.
"We expect another quarter of solid results from Canada and Dollarcity, with potential for a modest upward revision to FY26 guidance," Li said in a note to clients.
"Our latest pricing survey shows competition remains rational, with DOL maintaining its strong value proposition," the analyst said.
"On a price-per-unit basis, we estimate DOL is ~30-50% lower vs Walmart Inc. (WMT) and Amazon.com Inc. (AMZN)," Li said.
"We believe DOL's premium valuation is supported by investors' preference for safety and visible earnings growth, with longer-term upside from International expansion."
(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)
Comments