Dollarama Upgraded by Desjardins After Its Likely Forecast Error
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
DOL CN (Dollarama Inc)
People
Keith Howlett (Desjardins Securities Inc)
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UUID: 7947283
(Bloomberg) -- Dollarama is upgraded to buy from neutral by Desjardins, which will revise forward EPS estimates given "what almost appears to be systematic forecast error on our part." The company’s recent strong performance has been driven in large part by an increasing gross margin and decreasing SGA expense rate, Desjardins analyst Keith Howlett writes in a report.
- EPS growth rate above 25% over the past five years vs analyst expectations of 15% to 20%
- Gross margin rate up 103bps to 48.6%; adjusted to remove occupancy costs
- SGA expense rate of 13.9% is "unusually low"
- Dollarama is introducing products at higher price points and ramping up inventory velocity; guidance maintains 60 to 70 new stores openings (1,125 stores nationwide)
- PT upped to C$154 from C$134
- Shares up 3.2% to the highest ever
- NOTE: 12 buys, 4 holds, no sells; avg PT $144: Bloomberg data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
DOL CN (Dollarama Inc)
People
Keith Howlett (Desjardins Securities Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283