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Research Alert: CFRA Cuts Opinion On Shares Of Alimentation Couche-tard Inc. To Sell From Hold
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Research Alert: CFRA Cuts Opinion On Shares Of Alimentation Couche-tard Inc. To Sell From Hold
Jun 27, 2025 10:43 AM

01:25 PM EDT, 06/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by CAD12 to CAD62, 16x our FY 26 (Apr.) EPS and below ATD's long-term average forward P/E of 17x. We believe the discount is warranted given a tough macroeconomic backdrop that is weighing on convenience store traffic and overall fuel demand, with fuel prices also under pressure. Additionally, we expect valuation to remain subdued as merger talks with Seven & i Holdings continue to drag. ATD's earnings also remain exposed to global legal and regulatory developments, particularly around tobacco and nicotine products. We lower our FY 26 EPS by $0.22 to $2.82 (CAD3.87) and introduce FY 27 at $2.98 (CAD4.08). With top-line trends likely to remain soft, cost control will be a key focus in FY 26. ATD has paused share buybacks amid talks to acquire Seven & i. Our move to Sell from Hold reflects what we believe are overly optimistic consensus expectations for FY 26.

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