11:15 AM EDT, 03/28/2025 (MT Newswires) -- National Bank of Canada said it expects more partnerships over the medium term after Royal Bank of Canada ( RY ) and retailer Canadian Tire ( CDNTF ) (CTC-A.TO) signed a long-term strategic loyalty partnership between their Avion Rewards and Triangle Rewards loyalty programs.

National Bank believes that adding external partnerships to Triangle Rewards is a "prudent approach to expand its member base, accelerate the issuance of eCTM, as well as leverage more first-party data insights to leverage the flywheel effect and increase retail sales in a capital-light model." The bank expects more partnerships over the medium term as CTC has 100% ownership of CTFS and full control over the decision for potential partnerships.

National Bank of Canada maintained Canadian Tire's ( CDNTF ) rating and target of sector perform and $174, respectively, given soft consumer demand and uneven operating performance, even as it sees some positive signs emerging related to sales performance. Analyst Vishal Shreedhar commented: "We note that CTC's True North strategy is expected to accelerate retail growth and loyalty expansion."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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