Analysts Set Average Price Target of C$208.50 for Dollarama

Shares of Dollarama Inc. (TSE:DOL) are currently rated as a “Moderate Buy” by analysts from eleven research firms monitoring the stock, according to MarketBeat. The average twelve-month price target stands at C$208.50, reflecting a consensus among these analysts.

Among the analysts, three have issued a hold rating, while six recommend a buy and two have given a strong buy rating. This diverse set of opinions indicates a generally positive outlook for the discount retailer.

Several firms have recently adjusted their price targets for Dollarama. On August 28, Canaccord Genuity Group revised its price objective from C$200.00 to C$195.00, maintaining a “hold” rating. Conversely, National Bankshares increased its target from C$203.00 to C$214.00 and rated the stock as “outperform” on December 4.

In addition, Desjardins set a target of C$205.00 and assigned a “buy” rating in a note released on August 21. BMO Capital Markets also raised its price objective, moving it from C$215.00 to C$222.00 in a report on December 3. Meanwhile, CIBC lowered its target from C$204.00 to C$199.00 and classified the stock as “neutral,” also on August 28.

Dollarama Declares Dividend Amid Market Activity

In addition to these ratings, Dollarama announced a quarterly dividend on November 7, 2023. Shareholders of record received a dividend of $0.1058 per share, which translates to an annualized dividend of $0.42 and a yield of 0.2%. The ex-dividend date was set for October 10, 2023. Currently, the company’s dividend payout ratio is 8.77%, indicating a conservative approach to returning value to shareholders.

Dollarama, based in Canada, operates a chain of discount retail stores, offering a wide range of everyday consumer products, general merchandise, and seasonal items at low fixed price points. The company’s focus on affordability and variety has positioned it well within the retail sector, appealing to cost-conscious consumers.

As analysts continue to evaluate Dollarama’s performance and outlook, the company’s strategic decisions will likely play a crucial role in shaping its future growth. Investors remain attentive to further updates from research firms regarding this prominent player in the retail market.