Tamy Chen, an analyst from BMO Capital, maintained the Buy rating on Alimentation Couche-Tard Inc (ATD – Research Report). The associated price target remains the same with C$82.00.
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Tamy Chen’s rating is based on a combination of factors that highlight both current challenges and future opportunities for Alimentation Couche-Tard Inc. Despite the reduction in the expected earnings per share (EPS) for the fourth quarter of 2025, Chen believes that the company’s strategic investments in IT and digital infrastructure will eventually lead to improved operational efficiencies. This, coupled with the company’s ongoing efforts in expanding its store footprint in the U.S., suggests potential for organic growth.
Moreover, while the current U.S. fuel margin and merchandise sales trends present some headwinds, Chen anticipates that these factors will stabilize over time. The analyst also notes that the market’s expectations for the company’s future earnings might be overly optimistic, particularly regarding fuel margins and SG&A costs. Nonetheless, Chen sees medium-term growth prospects through mergers and acquisitions, which could provide additional upside to the stock. As such, despite the near-term challenges, the long-term strategic initiatives and growth opportunities justify a Buy rating.