2023-08-22 22:48:28
Dollarama will release its results for the second quarter of its fiscal year 2024 on September 13. (Photo: 123RF)
What to do with titles from Dollarama, NVIDIA and Palo Alto Networks? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.
Dollarama (DOL, $85.58): Sale of products at $4 and above progressing well
Twice a year, the financial services company Stifel analyzes the evolution of prices and the shopping basket at Dollarama.
As the value retailer will report its 2nd quarter results for its fiscal year 2024 on September 13, analysis suggests that the rollout of products priced at $4 and above is progressing well, accounting for 15% of items in stores, about double last year.
Additionally, Stifel’s analysis indicates that prices for products offered below $4 are 4.3% higher than the prior year, which bodes well for comparable sales growth in the current quarter. This means that the company succeeds in passing on the inflation of its costs to consumers.
Analyst Martin Landry expects Dollarama to report earnings per share of $0.75 on Sept. 13, up 13.6% from a year earlier.
He also believes that revenues could exceed expectations thanks to market share gains and higher prices. He maintains his buy recommendation and his target price is still $96.
The low-cost retailer has benefited over the past year as consumers have become more frugal in order to hedge against inflation and interest rates. The number of transactions during the 1st quarter had also increased by 15.5% over the previous year.
This phenomenon certainly allows the company to increase its market share and consolidate its position as the leader of Canadian retailers during this period of economic slowdown, concludes Martin Landry.
NVIDIA (NVDA, US$469.67): Some of the most anticipated results to be announced on Wednesday
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