Analysts Set Average Price Target of C$208.50 for Dollarama Shares

Shares of Dollarama Inc. (TSE:DOL) have received a consensus recommendation of “Moderate Buy” from eleven research firms covering the stock, according to MarketBeat. This assessment follows a review of the company’s performance and market potential, with three analysts suggesting a hold rating, six indicating a buy rating, and two recommending a strong buy.

Analysts have set an average twelve-month price target of C$208.50 for Dollarama shares. Notably, several firms have recently updated their forecasts. On August 28, 2023, Canaccord Genuity Group adjusted their price target for Dollarama from C$200.00 to C$195.00, maintaining a “hold” rating. In contrast, on December 4, 2023, National Bankshares raised their target from C$203.00 to C$214.00, issuing an “outperform” rating.

In further developments, Desjardins set a price target of C$205.00 on August 21, 2023, while BMO Capital Markets increased their target from C$215.00 to C$222.00 on December 3, 2023. Conversely, CIBC decreased their target from C$204.00 to C$199.00, assigning a “neutral” rating on August 28, 2023.

Dividend Announcement and Stock Performance

In addition to analyst ratings, Dollarama announced a quarterly dividend of $0.1058 per share, which was paid on November 7, 2023. Investors of record on that date received a total annualized dividend of $0.42, reflecting a yield of 0.2%. The ex-dividend date for this payment was October 10, 2023, and the company’s current dividend payout ratio stands at 8.77%.

As of the last trading session, Dollarama shares experienced a decline of 1.3%, reflecting broader market trends and investor sentiment. Analysts continue to monitor the stock, emphasizing its potential for growth amid a competitive retail landscape.

About Dollarama

Dollarama Inc. operates discount retail stores across Canada, offering a wide range of everyday consumer products, general merchandise, and seasonal items. The company is known for its fixed price points, making it a popular choice for budget-conscious shoppers. General merchandise and consumer products comprise the majority of Dollarama’s offerings, ensuring a diverse selection for customers.

As Dollarama navigates the retail market, it remains a key player in the discount sector, drawing attention from analysts and investors alike. With its recent dividend announcements and analyst ratings, the company is well-positioned for potential growth in the coming year.