08:35 AM EDT, 03/22/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by CAD2 to CAD80, 19x our FY 25 (Apr.) EPS and a premium to ATD's long-term mean of 17x. We cut our FY 24 EPS by $0.08 to $3.03 (CAD4.09) and FY 25's by $0.13 to $3.12 (CAD4.21). F3Q (Jan-Q) adj-EPS of $0.65 (-12% Y/Y) missed by $0.19. Revenue of $19,622M missed consensus by 6%. Same-store (SS) merchandise sales fell in all regions, driven by macro headwinds and softness in the cigarette category. SS fuel volumes were also weak, particularly diesel demand, which likely drove less in-store traffic. Fuel margins fell 8% Y/Y in the U.S., which is a bit concerning since convenience store operators have been leaning in on stronger fuel margins over the past few years to offset other cost pressures. The positive in this quarter was operating expense control, as normalized operating expenses fell 1.6% Y/Y, driven by labor efficiencies in the stores. ATD closed on the $3.8B TotalEnergies acquisition in January (+2,175 sites across Europe) and expects $187M of synergies over five years.