Analysts at RBC Capital Markets and TD Securities raised their price targets on Dollarama Inc. (DOL.TO) following its fiscal Q1 results on Wednesday.

RBC's Irene Nattel increased her target on shares of the Canadian dollar store chain to $207 from $190, and maintained an Outperform rating.

"Strong Q1 results against the backdrop of heightened macro uncertainty reinforces our view that DOL remains a best idea and core holding in 2025," Nattel said in a note to clients.

"Sector-leading growth trajectory, strong free cash flow and consistent capital returns are supportive of premium valuation," the analyst said.

TD analyst Brian Morrison raised his target to $210 from $186, and maintained a Buy rating.

"Dollarama Q1/F26 results were ahead of consensus and its F2026 guidance was maintained," Morrison said in a note to clients.

"The Canada 'soft land' is tracking better than anticipated, while Dollarcity is handily exceeding sales/leverage expectations supportive of its international growth aspirations," the analyst said.

"The valuation is admittedly 'rich', but should the model prove portable, there remains a long growth runway."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)