Executives at convenience store operator and fuel retailer Alimentation Couche-Tard Inc. (TSX:ATD, Financial), which is based in Laval, Quebec, Canada, ended 2021 with a bang, buying up bunches of properties and showing investors they intend to be movers and shakers in 2022.
On Dec. 29, the company was assigned a 73.00 Canadian dollar ($57.31) price target by investment analysts at Royal Bank of Canada (TSX:RY, Financial) in a research note issued to investors, according to BayStreet.CA. The company currently has an “outperform” rating on the stock. Royal Bank of Canada’s target price indicates a potential upside of 46.97% from the company’s previous close.
The price target upgrade comes after the company announced its purchase of 19 convenience stores and two non-operating properties across the state of New Mexico from Pic Quik. The deal had already closed. "The transaction includes 19 high-quality, well-run sites located predominantly in Southern New Mexico that are a strategic fit with our existing network as well as two non-operating properties," according to the news release.
"We are very pleased to welcome the Pic Quik locations and team to our Circle K family in New Mexico," said Alex Miller, Couche-Tard's Executive Vice President of Operations in North America and Global Commercial Optimization. "With this acquisition, we will be able to build on our strong network in the state and grow our mission of making our customers' lives a little easier every day."
On Dec. 17, the company’s Circle K chain also acquired the assets of Slidell Oil, which owned 17 stores operating primarily under the Purple Cow banner as well as 23 wholesale fuels accounts across three southeastern states.
“We are very pleased to add Slidell Oil's high-quality locations and fueling assets to our growing footprint along the Gulf Coast," said the company. "As we expand our presence in the area, we look forward to bringing the Circle K experience to new customers and making their lives a little easier every day.”
Couche-Tard operates in 26 countries and territories, with close to 14,200 stores, of which approximately 10,800 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics and Ireland. It also has an important presence in Poland and Hong Kong. Its other brands include Holiday, Ingo and Mac's.
Investors in the United States and Canada seem to like what they are seeing, judging by the year-end uptick in the stock price:
