The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Montreal-based Dollarama has a debt/equity ratio below 30 per cent, and a return on equity over 20 per cent.
Montreal-based Dollarama has a debt/equity ratio below 30 per cent, and a return on equity over 20 per cent.
(Deborah Baic/The Globe and Mail)

Eye on Equities

Dollarama price target upgraded; Saputo faces challenges

Dollarama may be poised to surprise investors with strong earnings when it reports earnings next week, said Raymond James Ltd. analyst Kenric Tyghe.

“Our first-quarter selling, general and administrative (expense) margins of 18.4 per cent could prove too conservative, with possibly lower than expected labour and transportation costs, contributing to a positive earnings surprise,” he wrote in a research note. Same-store sales are likely to show that price increases more than offset a decline in traffic, as consumer confidence remains weak, he said.