Looking for continued solid execution,” Scotia Capital’s George Doumet raised his Alimentation Couche-Tard Inc. target to $76 from $74 with a “sector outperform” rating. The average is $74.74.
“We have updated our Q4 estimates to account for lower fuel margins and other assumptions (lower merchandise margins, offset by higher same-store sales in the U.S., etc.) and are modestly below consensus for the quarter,” he said. “Additionally, we have reflected the recently announced acquisition of MAPCO in our estimates.
“We continue to prefer ATD’s defensive characteristics, improving M&A environment, and healthy balance sheet capacity to fund deals. Furthermore, current valuation, in our view, is undemanding in this environment (shares trading at 17.5 times P/E).”