Tuesday, August 26, 2025

Canaccord Raises Dollarama Price Target Ahead of Results

Dollarama Inc (TSX: DOL) is expected to report its second quarter financial results on September 9 before the markets open. The company currently has 15 analysts covering the stock with an average 12-month price target of $61.79, or a 8% upside. The street high sits at $70 from Wells Fargo and the lowest comes in at $51. The consensus revenue estimate for the quarter sits at $1.05 billion with 8 analysts having estimates.

Ahead of the results, Canaccord Genuity raised their 12-month price target on Dollarama to $57 from $53 and reiterated their hold rating on the stock, saying that they expect early quarter restrictions to weigh on the results.

The company fiscal second quarter is for the months from April to June, which is when Ontario banned non-essential retail sales, which were later lifted in June. Shortly after that, Ontario also eased restriction and increased store capacity but Dollarama’s second quarter results will show the months Ontario was in lockdown.

Due to this, Canaccord is forecasting same-store sales being down 2% year over year, bringing the decline to 15% for the first half of the year. For their revenue estimate, they are right in line with the consensus at $1.05 billion and EBITDA of $292 million for the quarter.

Canaccord says, “The relaxation on non-essential retail likely helped shift the product mix towards the company’s higher-margin regular seasonal and discretionary offerings.” But, they believe that this will be offset by any cost inflation, specifically shipping and freight costs rising. For these reasons, they are forecasting gross margins to come in at 43.4%, down 0.5% from a year ago but up 1.1% from last quarter.

Below you can see Canaccord’s updated fiscal 2022 and 2023 estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Hut 8 Mining: Canaccord Halves Price Target To US$6.00

On May 12th, Hut 8 Mining (TSX: HUT) reported its first quarter financial results. The...

Tuesday, May 17, 2022, 04:06:00 PM

Haywood Drops Cresco Labs Price Target To $24.50

Cresco Labs (CSE: CL) reported its first-quarter financial results this past week. The company announced...

Monday, May 31, 2021, 11:40:00 AM

Uranium Royalty Corp: Canaccord Lifts Price Target To $4.25

Uranium Royalty Corp (TSXV: URC) recently closed their C$37 million financing, allowing Canaccord Genuity to...

Saturday, May 22, 2021, 02:04:00 PM

Valens: Canaccord Cuts Price Target To $4.00 Due To Tapered Growth

On July 13, The Valens Company Inc. (TSX: VLNS) reported its second quarter financial results...

Tuesday, July 19, 2022, 04:56:00 PM

BMO Lifts Starbucks Price Target After Earnings Beat

Starbucks (NASDAQ: SBUX) reported their fiscal third quarter results on July 27. The company beat...

Tuesday, August 3, 2021, 04:52:00 PM