Dollarama downgraded to Sector Perform from Outperform at National Bank

National Bank downgraded Dollarama (DLMAF) to Sector Perform from Outperform with a C$149 price target The firm continues to hold a positive medium-term view on the company’s shares given its defensive growth orientation supported by strong cash flows, a solid balance sheet and resilient sales performance, and believes that Dollarama’s international growth will become increasingly important, the analyst tells investors in a research note. National Bank adds however that given the stock’s premium valuation, difficult compares, and significant capital outlay over the medium term, it expects the share price to be range-bound until its same-store sales growth returns to historical levels.