Alimentation Couche-Tard Inc T.ATD

Credit Suisse Upgrade

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Credit Suisse’s Karen Short upgraded Alimentation Couche-Tard Inc.  to “outperform” from “neutral” and hiked her target to $85 from $65. The average target on the Street is $79.05.

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The analyst likes the highly resilient convenient store industry in the current economic environment and Couche-Tard in particular because they have scale. They also note that the company’s gas margins are now “structurally elevated” from pre-pandemic norms and will maintain this level going forward.

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It would be nice if they gave you all the comments first time round. GLTA “The reasons for our rating upgrade are as follows: 1) ATD operates in the highly-resilient c-store industry, which has become increasingly favorable for scale players such as ATD as an increasing cost-to-operate environment has pressured smaller, less sophisticated operators; 2) Gas margins – a key driver of profitability