TSX:DOL - Post Discussion
Post by
retiredcf on Jun 08, 2023 10:22am
Another Raised Target
09:42 AM EDT, 06/08/2023 (MT Newswires) -- Stifel GMP on Thursday reiterated its buy rating on the shares of Dollarama (DOL.TO) while raising its price target to C$96.00 from C$94.00 after the discount retailer reported fiscal first-quarter results.
"Dollarama reported better than expected Q1FY24 results driven by strong growth in same-store-sales, up 17.1% Y/Y, the fastest pace in 10 years," analyst Martin Landry wrote. "Unchanged FY24 SSS guidance suggests a rapid deceleration in coming quarters to negative metrics which appears unlikely. According to management, Q2FY24 same-store-sales growth continues on a similar 2-year stack seen in Q1FY24. In addition, we believe Dollarama's market share gains are sustainable and could continue as Canadians feel pressure from rising interest rates. Hence, we see upside potential to FY24 SSS guidance and have increased our estimate to a 8.6% growth, higher than guidance of 5-6%. DOL's shares reaction was muted today as investors were digesting the unchanged guidance implications. However, we see upside to forward estimates as it increasingly appears that Dollarama has a longer runway of market share gains than previously expected. We increase our target price by $2.00 to $96.00 and maintain our BUY rating.
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