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Investing.com - RBC Capital has raised its price target on Dollarama Inc. (TSX:DOL) to C$212 from C$207 while maintaining an Outperform rating on the Canadian discount retailer’s stock.
The price target increase reflects RBC’s expectation of "solid" fiscal second-quarter results with key performance indicators likely to reach the high end of the company’s fiscal 2026 guidance, driven by "value-oriented yet resilient consumer spending."
RBC’s updated outlook incorporates preliminary forecasts for Dollarama’s Australian operations, which contributed 13 days to the fiscal second quarter, along with adjustments to core Canadian forecasts for the fourth quarter of fiscal 2026 and fiscal 2028.
The investment bank cited Dollarama’s "sector-leading growth trajectory" supported by a "visible and sustainable runway" in its core Canadian market, with additional growth coming from Latin America and emerging opportunities in Mexico and Australia.
RBC believes these growth factors, combined with "favourable flow of funds," justify Dollarama’s premium valuation in the market.
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