Analyst Etienne Ricard from BMO Capital maintained a Hold rating on Alimentation Couche-Tard Inc and keeping the price target at C$84.00.
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Etienne Ricard has given his Hold rating due to a combination of factors, notably that Alimentation Couche-Tard is showing improving U.S. same-store merchandise sales and solid demand in key categories like nicotine, beverages, and fuel, yet this momentum still only brings growth close to, not clearly above, its long-term targets. He notes that while meal deals and the expanding Inner Circle loyalty program are encouraging, execution on sustaining both same-store sales and margin gains in a softer macro environment remains critical and not yet fully de-risked.
Ricard also points out that the shares trade around 19x earnings, a premium to the company’s historical average, which limits upside given his forecast for only low single‑digit organic EBIT growth over the next two fiscal years. In his view, the current valuation already reflects the expected modest recovery in U.S. merchandise performance and incremental margin expansion, leaving a risk‑reward profile that is broadly balanced rather than compelling enough to justify a Buy recommendation.
According to TipRanks, Ricard is a 5-star analyst with an average return of 29.4% and a 67.41% success rate. Ricard covers the Financial sector, focusing on stocks such as Fiera Capital A, Sprott, and Equitable Group.
In another report released today, TipRanks – Google also downgraded the stock to a Hold with a C$90.00 price target.