Canaccord Genuity Issues a Buy Rating on Alimentation Cl A MV

By Carrie Williams

In a latest note to investors, a research analyst has provided a rating update for the Services sector company, Alimentation Cl A MV (TSX: ATD.A). Analyst Derek Dley from Canaccord Genuity rated Alimentation Cl A MV (TSX: ATD.A) a Buy on today, setting a C$72 price target.

Dley noted:

“Date and time of first dissemination: September 06, 2017, 09:09 ET Date and time of production: September 06, 2017, 09:09 ET Target Price / Valuation Methodology: Alimentation Couche-Tard Inc. – ATD.B Our C$72 target price represents 22.9x our F2018 EPS estimate of C$2.52. Risks to achieving Target Price / Valuation: Alimentation Couche-Tard Inc. – ATD.B Investment risks that may affect our valuation of Alimentation Couche-Tard include those associated with most consumer products companies. These include a downturn in consumer spending and/or consumer confidence, a weakening of the general economic environment, rising competition in the company’s market place, and changing government legislation relating to the company’s operations. Weakening fuel margins, revisions to agreements with suppliers, and rising credit card fees are additional risks. Distribution of Ratings: Global Stock Ratings (as of 09/06/17) Rating Coverage Universe IB Clients # % % Buy 593 60.88% 39.46% Hold 275 28.23% 24.00% Sell 22 2.26% 9.09% Speculative Buy 84 8.62% 70.24% 974* 100.0% *Total includes stocks that are Under Review Canaccord Genuity Ratings System BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months. HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months. NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.”

According to, Dley is ranked #297 out of 4642 analysts.

Currently, the analyst consensus on Alimentation Cl A MV is Strong Buy and the average price target is C$75.25, representing a 25.6% upside.

In a report issued on August 29, Barclays also maintained a Buy rating on the stock with a C$71 price target.

Alimentation Cl A MV’s market cap is currently C$34.05B and has a P/E ratio of 20.7.

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 C$59.90, close to its 52-week high of C$69.46.