Alimentation Cl A MV Receives a Buy from TD Securities

By Carrie Williams

Alimentation Cl A MV (TSX: ATD.A), the Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Van Aelst from TD Securities remains bullish on the stock and has a C$75 price target.

Van Aelst observed:

“We have adjusted our model to reflect the timing of the deal closing (originally, we had it at the beginning of Q1/F18) and the required divestiture of 70 stores, along with the fine-tuning of our depreciation, interest, and currency forecasts.”

According to TipRanks.com, Aelst is ranked #2179 out of 4588 analysts.

Currently, the analyst consensus on Alimentation Cl A MV is Strong Buy and the average price target is C$75.60, representing a 16.3% upside.

In a report issued on June 23, Scotiabank also maintained a Buy rating on the stock with a C$76 price target.

Based on Alimentation Cl A MV’s latest earnings report for the quarter ending January 31, the company posted quarterly revenue of C$15.21 billion and quarterly net profit of C$382 million. In comparison, last year the company earned revenue of C$9.83 billion and had a net profit of C$274 million.

Alimentation Couche-Tard, Inc. operates independent convenience stores in Canada. It engages in the sale of goods for immediate consumption, road transportation fuel, and other products mainly through corporate stores and franchise operations under different brand names namely, Circle K, Couche-Tard, Mac’s Kangaroo Express, Statoil, Ingo, Topaz, and Re.Store.

The company’s shares closed on Tuesday at $65.