Alimentation Couche-Tard Inc (ATD) has received a new Hold rating, initiated by Goldman Sachs analyst, Bonnie Herzog.
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Bonnie Herzog has given his Hold rating due to a combination of factors related to Alimentation Couche-Tard Inc’s current market position and future prospects. The company has a strong international presence, which is a positive aspect, but its medium-term targets appear ambitious. The recent withdrawal from acquiring Seven & i Holdings has left the company without a significant growth catalyst that was anticipated.
Despite this, there are several positive developments, such as the expansion in foodservice and a globally expanded loyalty program, which are contributing to traffic and sales growth. Additionally, the re-initiated share repurchase program and management’s expectation to exceed cost savings objectives by FY28 are promising. However, the stock is trading at a discount compared to its sector, which suggests a balanced risk-reward scenario, justifying the Hold rating.
Herzog covers the Consumer Defensive sector, focusing on stocks such as Constellation Brands, Monster Beverage, and Philip Morris. According to TipRanks, Herzog has an average return of 4.8% and a 57.02% success rate on recommended stocks.
In another report released on September 3, BMO Capital also maintained a Hold rating on the stock with a C$78.00 price target.