TD Cowen analyst Michael Van Aelst reiterated a Buy rating on Alimentation Couche-Tard Inc today and set a price target of C$89.00.
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Michael Van Aelst has given his Buy rating due to a combination of factors influencing Alimentation Couche-Tard Inc’s performance. The company’s shares have decreased year-to-date, bringing the valuation close to three-year lows and below the long-term average, making it an attractive investment opportunity. Despite challenges in consumer health, the company is showing sequential improvements in same-store sales trends, with operational expense growth beginning to moderate.
Additionally, the forecasted adjusted earnings per share are expected to rise, driven by stable fuel margins and improved execution in foodservice, energy drinks demand, and digital strategies. The company is also expected to benefit from stronger same-store sales growth in Canada and Europe, supported by domestic travel trends and enhanced loyalty programs. These factors contribute to a positive outlook for Alimentation Couche-Tard Inc, justifying the Buy rating.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATD in relation to earlier this year.