Tuesday, October 28, 2025

Canaccord Downgrades Alimentation Couche-Tard Ahead Of Q4 Results

Ahead of Alimentation Couche-Tard’s (TSX: ATD.B) fiscal fourth-quarter results, Canaccord Genuity has downgraded the company from a Buy to a Hold, while reiterating their C$46 price target. Derek Dley, their analyst, says they are downgrading the name in anticipation of the next few quarters having hard year-over-year comparables. This is due to the extremely high fuel margins during COVID-19, now that oil has moved from the low teens all the way up to $72 dollars, margins have compressed.

Couche-Tard currently has 16 analysts covering the name, with a weighted 12-month price target of only C$47.49, or a 7% upside. Three analysts having a strong buy rating, seven have buy ratings and six have hold ratings. The street high sits at C$58.84, which comes from Arc Independent Research and the lowest sits at C$42.

Another reason for the downgrade is due to Couche-Tard’s M&A strategy. Dley thinks that their investor base is “nervously waiting”, and while previously investors would be willing to give a premium to Couche-Tard “for its ability to acquire and integrate larger c-store acquisitions,” the rumored Carrefour acquisition that started at the beginning of this year dropped that premium to near the all-time low around that time. Dley indicated he will remain cautious on the company’s M&A strategy until “the company addresses its long-term strategy.”

Although Canaccord believes that the company’s margins will get compressed, they believe that this quarter will show a reversal for fuel volumes as many countries are open or slowly opening and the summer months usually have higher fuel consumption. Below you can see their estimates for the full consumption per different countries.

Below you can see Canaccord’s key assumptions for the fourth quarter.

Dley writes, “Given the challenging earnings backdrop Couche-Tard is facing over the next couple quarters, the cautious M&A thesis, and the fact the share price has bounced back to our target price following the sell-off earlier this year, we are comfortable moving to the sidelines.”


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Related News

NG Energy: Beacon Reiterates Buy Rating, Suggests Firm Could Move Beyond $2.80 Price Target

On January 4th, NG Energy (TSXV: GASX) announced that it has completed all civil works and...

Sunday, January 9, 2022, 11:17:00 AM

Metalla: BMO Raises Price Target After Royalty Acquisition

This past week, Metalla Royalty & Streaming (TSXV: MTA) announced that they have acquired a...

Saturday, June 26, 2021, 04:54:00 PM

Tilray: Haywood Slashes Price Target From $7.25 To $4.00

Tilray Brands (TSX: TLRY) is expected to report its fiscal fourth-quarter results on July 26th....

Wednesday, July 13, 2022, 02:54:00 PM

Jushi Holdings: Canaccord Raises Price Target Following Virginia News

On Saturday, both the Virginia House and Senate approved a recreational cannabis bill, which will...

Tuesday, March 2, 2021, 02:47:00 PM

Stifel Reinitiates Coverage On Eight Cannabis Operators

Earlier this week, Stifel released a new report on cannabis operations, focused predominantly on US-based...

Friday, July 24, 2020, 03:30:00 PM