logo
  Join        Login             Stock Quote

CIBC Raises PT On Alimentation Couche-Tard To $43 After Norway Acquisition

 April 19, 2012 10:50 AM


CIBC World Markets Inc. lifted its price target on shares of Alimentation Couche-Tard Inc. (TSE:ATD.B) to $43.00 from $33.00, saying the Canadian convenience store operator announced a "stunning and excellent" acquisition of Norway-based Statoil Fuel and Retail (SFR).

SFR operates 2300 c-stores with leading shares in Norway, Sweden and Denmark; and a growing business in CEE countries such as Poland, Russia and Lithuania.

"The risks of this acquisition are minimal, but so are the synergies...SFR will become a strong platform for Couche-tard's long-term growth in Europe," CIBC analyst Perry Caicco wrote in a note.

Caicco, who has a "Sector Performer" rating on the stock, raised his 2013 EPS estimate for the company to US$2.87 from US$2.28 and introduced 2014 EPS estimate of US$3.15.

[Related -These Small Caps Now Hold Deep Value]

SFR's share price had been depressed (due largely to issues in Poland), so ATD was able to pay a 52 percent premium and still acquire the assets for just 6.9 times EBITDA, the analyst said, adding that the deal seems accretive by about 30 percent.

On Thursday, the stock lost 2.75 percent to trade at $38.51. Over the past year, shares have been trading between $24.76 and $40.38.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageRussell 2000 Showing Relative Weakness at the New Highs

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the read on...

article imageThe Poster Boy For Liberal Economics Discovers The Tax Factor

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times read on...

article imageMacroprudential Policy And Distribution Of Risk

There is very little doubt that housing prices and leverage played a strong role in the global financial read on...

article imageIs the World Turning Japanese?

Many really think so, but reality suggests read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.