01:00 PM EDT, 09/06/2024 (MT Newswires) -- National Bank has trimmed its target on Alimentation Couche-Tard ( ANCTF ) by $1, to $85, after the company reported first quarter adjusted EPS of $0.83 versus NBF at $0.86 and consensus at $0.84. Last year was $0.86.

National Bank said first quarter results were "tepid" given a miss across many key metrics. Relative to NBF expectations, merchandising was the most significant source of the underperformance. Second quarter intra-quarter merchandising trends remain slightly negative, although management noted easier comparables in the fall.

Couche-Tard also expressed confidence in its ability to finance and complete a combination with Seven & i. The bid was rejected on Friday, with Seven & i saying the offer price is insufficient.

"If ATD achieves its F2028 targets, upside remains. That said, recent lacklustre merchandising trends call into question ATD's aggressive plans under its "10 For The Win" strategy," notes analyst Vishal Shreedhar.

Maintain Sector Perform rating; price target trimmed to $85.

Price: 76.29, Change: +0.88, Percent Change: +1.17