Alimentation Couche-Tard Inc. (ATD-B:TSX) Analysts see 20 percent upside

STA Research assigns Alimentation Couche-Tard with a Hold rating at CAD 50 target

Based on the Alimentation Couche-Tard Inc stock forecasts from 8 analysts, the average analyst target price for Alimentation Couche-Tard Inc is CAD 59.43 over the next 12 months. Alimentation Couche-Tard Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Alimentation Couche-Tard Inc is Neutral, which is based on 3 positive signals and 3 negative signals. At the last closing, Alimentation Couche-Tard Inc’s stock price was CAD 49.67. Alimentation Couche-Tard Inc’s stock price has changed by +0.00% over the past week, +0.00% over the past month and +14.34% over the last year.

STA Research assigned the stock with a Hold rating and a $50 target price.

National Bank of Canada Financial maintained the Sector Perform rating, with a $58 target on the stock.

Convenience stores are run and licenced by Alimentation Couche-Tard Inc. Its convenience stores offer a variety of goods, including cigarettes, groceries, sweets, drinks, fresh food, beer, wine, and aviation fuels as well as stationary engine fuel. Actidev Inc. was the business’s previous name until it was renamed to Alimentation Couche-Tard Inc. in December 1994. With its headquarters in Laval, Canada, Alimentation Couche-Tard Inc. was established in 1980.

 

What we like:

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.