Tamy Chen, an analyst from BMO Capital, maintained the Buy rating on Alimentation Couche-Tard Inc (ATD – Research Report). The associated price target was lowered to C$85.00.
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Tamy Chen’s rating is based on several factors, including Alimentation Couche-Tard Inc’s potential for organic growth and strategic M&A opportunities. Although the current macroeconomic conditions in the U.S. present challenges, the company is expected to achieve modest medium-term organic EBITDA growth. This growth is anticipated to be driven by improvements in U.S. merchandise gross profit and stable fuel gross profit, alongside growth in European and Canadian markets.
Moreover, the strategic acquisitions of TotalEnergies and Getgo are likely to enhance financial performance in the near future. While the company’s timeline to reach its $10 billion EBITDA target might extend due to these headwinds, the ongoing global M&A initiatives, particularly in Asia and Europe, are expected to support its growth strategy. These elements contribute to the Buy rating, reflecting confidence in Alimentation Couche-Tard Inc’s long-term growth prospects.
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