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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (57083)	4/12/2019 6:59:46 AM
From: Goose94	Read Replies (1) \| Respond to of 202767

DOLLARAMA (DOL-T) Industrial Alliance analyst Neil Linsdell says Dollarama remains a "solid" operator with "industry-leading margins and further growth opportunities in Canada that justify a premium valuation." Mr. Linsdell, however, in reaction to a 22-per-cent appreciation in share price thus far in 2019, lowered his rating for the discount retailer's stock to "hold" from "buy." Mr. Linsdell maintained a share target of $39. Analysts on average target the shares at $39.25. Mr. Linsdell says in a note: "Following the company's Q4/F19 results release, we reduced the valuation multiple that we use to calculate our target price. We now use an EV/EBITDA [enterprise value to earnings before interest, taxes, depreciation and amortization] multiple of 13.5 times, which is three times above the average multiple (of 10.5 times) that our industry comparables have traded at over the last five years. (The current average multiple of our comparables is 11.3 times.) This is half of the six times premium that DOL has enjoyed over the same time period, but we believe this lower premium is justified given the recently lowered growth expectations.