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Research Alert: CFRA Keeps Hold Opinion On Shares Of Alimentation Couche-tard Inc.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Alimentation Couche-tard Inc.
Sep 3, 2025 12:20 PM

02:45 PM EDT, 09/03/2025 (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 maintain our 12-month target at CAD81, 21x our FY 26 (Apr.) EPS of USD2.80 (CAD3.86), down slightly from USD2.82. We raise our FY 27 EPS to USD3.19 (CAD4.40) from USD2.98, reflecting accelerated share repurchases following the withdrawal of the Seven & i Holdings acquisition offer. FQ1 results were solid, highlighted by a return to U.S. same-store merchandise growth, which we attribute to traction in value meal and bundle offerings, helping boost food and beverage sales. That said, the U.S. macroeconomic backdrop remains soft, as same-store fuel volumes declined again and have not grown Y/Y in nearly two years. The balance sheet remains healthy, with leverage at 2.2x and liquidity of USD4.4B (including USD2.2B in cash). We maintain our Hold rating, as ongoing macroeconomic headwinds temper the otherwise strong execution (e.g., normalized operating expenses up just 2.4% in FQ1 vs. +3.8% in the prior-year quarter). We expect the company to lean toward share buybacks for shareholder value.

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