In a report released yesterday, Anthony Bonadio from Wells Fargo maintained a Buy rating on Alimentation Couche-Tard Inc (ATD – Research Report), with a price target of C$82.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Anthony Bonadio has given his Buy rating due to a combination of factors that indicate potential growth and value in Alimentation Couche-Tard Inc. Despite a slight miss in the fourth quarter earnings, there are positive signs of improvement heading into the first quarter. The company has shown progress in its U.S. merchandise sales trends and has seen a boost in its food offerings and loyalty program, which are expected to drive future growth.
Additionally, the integration of TTE is exceeding synergy targets, contributing to a positive outlook for the European segment. The anticipated resolution of the 7&i deal could serve as a near-term catalyst, and the company’s strong cash position suggests potential for significant share repurchases if the deal does not proceed. Overall, the stock appears undervalued, trading at less than nine times EBITDA, which supports the Buy recommendation.
Bonadio covers the Consumer Cyclical sector, focusing on stocks such as Murphy USA, Casey’s General, and Alimentation Couche-Tard Inc. According to TipRanks, Bonadio has an average return of 13.1% and a 65.12% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$94.00 price target.