Arko Corp. price target lowered to $4.50 from $6 at BMO Capital

BMO Capital lowered the firm’s price target on Arko Corp. (ARKO) to $4.50 from $6 and keeps a Market Perform rating on the shares. The firm notes Q4 EBITDA was in line with consensus and at midpoint of guidance, bringing 2024 EBITDA down (10%) year-over-year. 2025 guidance implies EBITDA down low single digits, but with organic EBITDA potentially down high single digits. Further meaningful but “unquantified dealerizations” are planned in 2025, though BMO sees risks benefits from this strategy deteriorate over time, and for the remaining stores, the firm forecasts weak underlying trends. BMO believes lack of visibility from Arko’s continually evolving strategy justifies continued caution.