Alimentation Couche-Tard stock maintains Strong Buy rating at Raymond James

Published 25/08/2025, 21:58
Alimentation Couche-Tard stock maintains Strong Buy rating at Raymond James

Investing.com - Raymond James has reiterated its Strong Buy rating and C$80.00 price target on Alimentation Couche-Tard Inc (TSX:ATD) (OTC:ANCUF) ahead of the company’s fiscal first-quarter 2026 results.

The convenience store operator is scheduled to report its quarterly earnings on September 2, after market close, covering the period ending July 20, 2025.

Raymond James highlighted potential benefits from future mergers and acquisitions for Couche-Tard, citing the highly fragmented nature of the convenience store industry, alongside numerous organic growth initiatives within its core operations.

The firm noted that while Couche-Tard’s stock has been relatively range-bound over the past six months due to soft U.S. consumer spending and muted fuel margin trends, the withdrawal of the 7&i offer has sparked renewed interest in the stock.

Raymond James maintains a favorable view of the risk/reward setup at current valuation levels, pointing to easier year-over-year comparisons in fiscal year 2026 and medium-term EBITDA growth opportunities.

In other recent news, Alimentation Couche-Tard has seen a series of analyst actions and strategic decisions. The company withdrew its offer to acquire Seven & i Holdings, the owner of 7-Eleven, due to unproductive negotiations and regulatory challenges, leading CFRA to upgrade its stock rating from Sell to Hold and raise the price target to C$81.00. Raymond James continues to support the company, reiterating its Strong Buy rating with a price target of C$80.00 following the withdrawal of the acquisition proposal. Meanwhile, BMO Capital downgraded Alimentation Couche-Tard from Outperform to Market Perform, citing modest expectations for organic EBIT growth in the coming fiscal years. Additionally, BMO Capital adjusted its price target to C$75.00, highlighting concerns over higher-than-expected SG&A and D&A growth, as well as slower same-store sales in certain product categories. These developments reflect the mixed perspectives among analysts regarding the company’s future performance.

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