NEW YORK (TheStreet) -- Shares of CST Brands (CST) are down by 2.11% to $44 in pre-market trading on Friday morning, as the stock gives back some of yesterday's gains when it spiked above 18% on reports of takeover interest.

Canada's Couche-Tard and Japan's Seven & i Holdings Co. are both said to have submitted indicative offers to purchase the U.S. convenience store retailer, Reuters reported.

Couche-Tard and Seven & i own the 7-11 convenience store chain and are competing against a number of other bidders including a consortium of private equity firms Blackstone Group (BX) and Apollo Global Management (APO).

The interest in CST highlights the series of consolidations in the North American convenience store sector, as businesses try and deal with low profit margins and look for ways to save while gaining scale, Reuters added.

Separately, TheStreet Ratings has set a "buy" rating and a score of B on CST Brands stock. This is driven by some important positives, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks it covers.

The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and good cash flow from operations. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that it evaluated.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: CST

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