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BMO Capital raised its price target on Casey’s General Stores (NASDAQ:CASY) to $515 from $450 on Wednesday, while maintaining a Market Perform rating on the convenience store operator’s shares. According to InvestingPro data, Casey’s stock is currently trading near its 52-week high of $509.08, with a market capitalization of $18.4 billion.
The research firm cited Casey’s "meaningful outperformance" compared to convenience store peers and industry benchmarks as a key factor behind the increased target. BMO noted Casey’s strong execution has supported "impressive consistency in EBITDA growth." This performance is reflected in the company’s recent metrics, with InvestingPro data showing a robust 50.85% return over the past year and revenue growth of 7.25%.
Casey’s has achieved double-digit EBITDA growth for seven consecutive years, averaging 14% growth during this period, according to BMO. The company managed to finish fiscal year 2025 with 13% EBITDA growth despite experiencing a second straight year of declining year-over-year fuel margins. InvestingPro analysis indicates the company maintains a GOOD overall financial health score, operating with a moderate level of debt.
BMO acknowledged several points that could support a continued bullish outlook for Casey’s stock. However, the firm pointed to valuation concerns as the reason for maintaining its neutral stance on the shares.
The convenience store chain’s valuation has moved from "good" at approximately 10 times two-year forward EV/EBITDA to "great" at roughly 14-15 times, leading BMO to remain "sidelined for now" despite raising its price target.
In other recent news, Casey’s General Stores reported impressive fourth-quarter results, with revenues increasing by 11% year-over-year. The company’s earnings per share of $2.63 surpassed consensus estimates, driven by stronger-than-expected fuel margins and better-than-anticipated inside margins. Jefferies, Evercore ISI, and Goldman Sachs analysts have all raised their price targets for Casey’s, with Jefferies setting it at $575.00, Evercore ISI at $530.00, and Goldman Sachs at $450.00, citing the company’s strong performance and growth outlook. Casey’s fiscal year 2026 guidance projects 10-12% EBITDA growth, aligning with analyst expectations.
Evercore ISI highlighted Casey’s ability to gain market share and execute effectively, while noting potential risks like wage inflation and commodity volatility. RBC Capital maintained its Sector Perform rating, acknowledging the company’s robust gas margins and an upward revision in fiscal year 2026 earnings per share by 1%. KeyBanc reiterated its Overweight rating, with a price target of $500.00, emphasizing the company’s market share gains and robust fuel margins. Casey’s management also announced a 14% dividend increase, reflecting confidence in its financial performance and strategic direction.
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