BMO Capital analyst Tamy Chen has maintained their bullish stance on ATD stock, giving a Buy rating today.
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Tamy Chen has given her Buy rating due to a combination of factors that highlight both challenges and potential growth opportunities for Alimentation Couche-Tard Inc. Despite a tepid performance in U.S. same-store sales (SSS) and a higher-than-expected increase in operating expenses, there are signs of incremental positives. Notably, the U.S. merchandise SSS in the first quarter of fiscal year 2026 has shown modest improvement compared to the previous quarter, and the company’s loyalty program is gaining traction, potentially driving incremental sales.
Moreover, the management’s ongoing due diligence and meetings with Seven suggest potential strategic developments, which could include a deal or a resumption of share buybacks if no deal is reached. Although the company’s gross profit growth is currently lagging behind operating expense growth, the analyst sees medium-term opportunities for organic growth and mergers and acquisitions. This outlook, combined with the company’s initiatives to enhance customer engagement through personalization in its loyalty program, underpins the Buy rating despite the current challenges.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a C$82.00 price target.
ATD’s price has also changed moderately for the past six months – from C$80.590 to C$68.900, which is a -14.51% drop .