CLSA maintains Seven & i stock rating amid takeover bid by Alimentation Couche-Tard

Published 20/08/2024, 08:14
CLSA maintains Seven & i stock rating amid takeover bid by Alimentation Couche-Tard

On Tuesday, Seven & i Holdings Co Ltd (3382:JP) (OTC: SVNDF) stock remained at a Hold (3) rating with a price target of JPY2,080.00, as confirmed by a CLSA analyst.

The rating follows news that the company received a takeover bid from Alimentation Couche-Tard, a Canadian convenience store operator with a market capitalization of $59 billion. The bid has sparked significant interest in Seven & i's shares, which surged to their limit on the stock exchange.

Seven & i, known for its 7-Eleven stores, has been in discussions with Alimentation Couche-Tard intermittently for over a year. The Japanese company has formed a special committee to review the acquisition proposal.

Previously, activist investors have criticized Seven & i for not addressing its "conglomerate discount," which hinders significant restructuring efforts.

Despite the takeover interest, the company's fundamentals are considered weak. Its 7-Eleven stores, especially in the United States and Japan, have been losing market share to competitors. The current situation, however, is expected to attract more attention to the company's stock.

In response to the unfolding events, CLSA has maintained its current stock rating and Sum of the Parts (SOTP) price target. The firm has indicated awaiting further news before adjusting its assessment of Seven & i's stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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