BMO Capital Markets Has Lowered Expectations for Dollarama (TSE:DOL) Stock Price

Dollarama (TSE:DOL) had its price target cut by equities research analysts at BMO Capital Markets from C$222.00 to C$210.00 in a research note issued on Wednesday,BayStreet.CA reports. BMO Capital Markets’ target price indicates a potential upside of 24.38% from the company’s previous close.

Several other research firms also recently issued reports on DOL. Royal Bank Of Canada decreased their price objective on shares of Dollarama from C$225.00 to C$223.00 in a report on Wednesday. Sanford C. Bernstein boosted their target price on shares of Dollarama from C$223.00 to C$232.00 in a research note on Friday, December 12th. National Bank Financial reduced their price target on shares of Dollarama from C$225.00 to C$198.00 and set an “outperform” rating for the company in a research report on Wednesday. Canadian Imperial Bank of Commerce raised shares of Dollarama from a “hold” rating to an “outperform” rating and decreased their price target for the company from C$212.00 to C$202.00 in a research note on Wednesday. Finally, UBS Group lowered their price objective on Dollarama from C$210.00 to C$191.00 in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of C$202.92.

Dollarama Trading Down 1.8%

Shares of DOL stock opened at C$168.84 on Wednesday. Dollarama has a 1-year low of C$147.00 and a 1-year high of C$209.96. The company has a market cap of C$46.19 billion, a price-to-earnings ratio of 35.92, a PEG ratio of 1.93 and a beta of 0.15. The company has a debt-to-equity ratio of 370.61, a current ratio of 1.13 and a quick ratio of 0.08. The stock has a 50 day simple moving average of C$191.42 and a 200-day simple moving average of C$191.81.

Dollarama (TSE:DOL) last released its quarterly earnings results on Tuesday, March 24th. The company reported C$1.43 earnings per share (EPS) for the quarter. The firm had revenue of C$2.10 billion for the quarter. Dollarama had a net margin of 18.05% and a return on equity of 94.71%. On average, equities research analysts expect that Dollarama will post 5.3295203 EPS for the current fiscal year.

Key Dollarama News

Here are the key news stories impacting Dollarama this week:

• Positive Sentiment: Management raised the quarterly dividend by 13%, a direct cash return to shareholders that supports yield-focused investors and signals capital allocation discipline. Canadian Retailer Dollarama Increases Dividend 13%
• Positive Sentiment: CIBC upgraded Dollarama from “hold” to “outperform” (C$202 PT), indicating at least one major house sees upside despite recent weakness. Analyst Ratings Roundup
• Neutral Sentiment: Some analysts and columnists argue the post‑earnings 10% drop is an overreaction and present a “buy‑the‑dip” case — useful context for contrarian investors but not new company fundamentals. Market Overreacts? Dollarama’s 10% Post-Earnings Drop Looks Like a Golden Entry Point
• Neutral Sentiment: Commentary asks whether bigger shareholder payouts reflect capital discipline or fewer organic growth avenues — a mixed signal that could matter to longer‑term strategy investors. Do Bigger Payouts Hint At Capital Discipline Or Fewer Growth Avenues Ahead?
• Negative Sentiment: Management flagged annual sales guidance largely below Street estimates and said price increases will be passed on only “where absolutely necessary,” raising near‑term top‑line and margin concerns. Dollarama to only pass on price increases from war where ‘absolutely necessary’: CEO
• Negative Sentiment: Multiple major banks cut price targets across the board (Scotiabank, BMO, Wells Fargo, UBS, TD, RBC, etc.), reflecting lower growth expectations and helping drive selling pressure. Analyst Ratings Roundup
• Negative Sentiment: Coverage pieces note this was Dollarama’s worst trading day since 2018 and the stock’s sharp post‑earnings slide — market momentum and reduced investor confidence are amplifying volatility. Dollarama stock just saw its worst day since 2018 — Why Bay Street isn’t flinching
• Neutral Sentiment: Detailed Q4 writeups suggest the quarter was soft but that core profitability (recent EPS C$1.43; strong ROE and margins) still supports a premium multiple; investors must decide if the pullback is a buying opportunity or a sign of structural slowing. Dollarama: Look Through A Soft Q4

Dollarama Company Profile

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items, with merchandise at low fixed price points. General merchandise and consumer products jointly account for the majority of the company’s product offerings. The company’s stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns.