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Investing.com - BMO Capital lowered its price target on Alimentation Couche-Tard Inc (TSE:ATD) (OTC:ANCUF) to C$76 from C$82 on Wednesday while maintaining an Outperform rating on the convenience store operator’s stock.
The firm cited higher-than-expected SG&A and D&A growth outlook that currently outpaces gross profit growth as a key factor in its decision to reduce the price target. BMO Capital also noted slower-than-expected same-store sales in Other Tobacco Products and U.S. food categories.
Despite these concerns, BMO Capital highlighted some positive developments, including first-quarter fiscal 2026 U.S. merchandise same-store sales tracking modestly better than fourth-quarter fiscal 2025 averages. The firm also mentioned the potential for "some sort of conclusion with Seven in the coming months."
BMO Capital maintained its target multiple of 11x fiscal 2026 estimated EBITDA for Alimentation Couche-Tard. The firm indicated that the convenience store chain remains "low in our pecking order" of preferred investments.
Alimentation Couche-Tard operates a network of convenience stores across North America, Europe, and Asia, primarily under the Circle K brand outside of Quebec.
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