Dollarama Stock Target Raised by Major Analysts Amid Bullish Sentiment

Canadian discount retail chain Dollarama Inc. $DOL.TO has become the focus of renewed optimism on Bay Street after a series of upgraded analyst ratings and increased price targets from top financial institutions. The flurry of upward revisions suggests that institutional investors are forecasting strong earnings momentum and operational resilience, particularly in the face of a softening Canadian retail environment and evolving consumer spending behavior.

These upgrades come at a time when Dollarama continues to benefit from price-conscious consumer trends, robust store expansion, and improved supply chain efficiencies. The company’s consistent performance during inflationary cycles has made its stock increasingly attractive for long-term value investors and defensive portfolio strategies.

Valuation Revisions Reflect Strength in Business Fundamentals

Over the past several weeks, multiple brokerages have revised their outlook on Dollarama, highlighting expectations for revenue and earnings per share (EPS) growth through FY2025. Among the notable upgrades:

• Canaccord Genuity Group raised its price target from C$168.00 to C$178.00.

• UBS Group boosted its valuation from C$147.00 to C$165.00.

• Stifel Nicolaus upgraded its price forecast from C$140.00 to C$162.00.

• TD Securities lifted its target from C$160.00 to C$185.00, assigning a “Buy” rating.

• National Bank Financial upgraded the stock from “Hold” to “Buy”.

Market consensus, according to MarketBeat.com, now places Dollarama at an average target price of C$167.00, with a consensus rating of “Moderate Buy”, reflecting strong institutional confidence in the company’s growth strategy.

🔹 Key Facts:

• 🏪 Company: Dollarama Inc.

• 📊 Sector: Retail – Discount & Variety Stores

• 🔼 Recent Price Target Increases: C$140 → C$185 across institutions

• 📈 Market Rating: “Moderate Buy” (MarketBeat consensus)

• 📅 Key Rating Dates: March 27, April 4, June 5

• 💰 Primary Drivers: Price-sensitive consumer behavior, margin resilience, store network expansion

Market Response and Expert Commentary

The wave of bullish analyst sentiment has energized investor interest in Dollarama, which has already outperformed several peers in the TSX consumer staples segment. Its defensive retail model and high product turnover rates allow the company to pass through costs efficiently while maintaining competitive pricing—an advantage in periods of elevated inflation and consumer uncertainty.

Additionally, the company’s continued investment in domestic and Latin American expansion, along with digital operational enhancements, has positioned it to weather macroeconomic headwinds better than many of its mid-cap retail counterparts.

Analysts note that Dollarama’s same-store sales growth and disciplined inventory management continue to support robust free cash flow generation, a critical metric for dividend stability and potential buybacks.

🔑 Key Takeaways:

1. Five major financial institutions upgraded their target prices for Dollarama within Q2 2025.

2. The highest new price target comes from TD Securities at C$185.00, indicating >10% upside from current levels.

3. Consensus now reflects a Moderate Buy rating, with 12 out of 14 analysts either recommending a Buy or Strong Buy.

4. Dollarama’s business model resilience and store footprint optimization remain central to analyst confidence.

5. Upgrades signal strong institutional backing amid macro uncertainty in Canadian retail.

Dollarama Strengthens Its Investment Case with Analyst Endorsements

The latest bullish analyst coverage reinforces Dollarama’s position as one of Canada's most resilient retail stocks, benefiting from economic defensiveness, scalable operations, and solid fundamentals. With upwardly revised targets from multiple institutions, the company appears well-positioned to maintain momentum, especially if consumer demand for value-driven products remains elevated.

As inflation dynamics and consumer behavior evolve, Dollarama’s emphasis on cost leadership and operational discipline may continue to attract institutional capital and retail investors seeking stability in an uncertain environment. The broad analyst alignment underscores growing confidence in both the company’s short-term execution and long-term strategy.