Dollarama Inc.
Thesis
We recommend a long position in Dollarama due to its potential for significant growth through store expansion and operational improvements, including adopting zone pricing and optimizing its logistics network. The proposed strategies could lead to a target price of C$81, representing an attractive risk/reward profile with a potential IRR of 11%.
Did it work?
The long thesis on Dollarama has significantly played out, with the stock price increasing by 364.9% since the pitch. The company's successful store expansion and operational improvements align with the initial growth expectations, and the target price of C$81 has been surpassed, indicating a strong risk/reward profile. Given that 87 months have elapsed, which is well beyond the typical investment horizon, the thesis can be confidently deemed successful.
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