The Globe and Mail reports in its Friday, Aug. 29, edition that National Bank Financial analyst Vishal Shreedhar continues to rate Dollarama "outperform." The Globe's Darcy Keith writes that Mr. Shreedhar gave his share target a $10 trim to $203. Analysts on average target the shares at $203.36. Mr. Shreedhar describes Dollarama's second quarter results as "good," but noted that the retailer's decision to keep its full-year same-store sales growth guidance indicates a "deceleration" in the second half of the year due to inconsistent consumer behaviour and increased competition. Dollarama shares fell over 3.6 per cent on Wednesday due to concerns about delayed profitability from its acquisition of Australia's The Reject Shop. This decline occurred despite quarterly earnings per share of $1.16, which was up 14 cents from last year and exceeded projections by a penny while matching the overall forecast. He attributed the narrow beat to stronger-than-anticipated results from its Latin American value retailer Dollarcity and "slightly" higher-than-expected gross margins. Mr. Shreedhar has a positive outlook on Dollarama's shares due to stable growth, strong cash flows, a solid balance sheet and resilient sales performance.
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