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KeyBanc raised its price target on Casey’s General Stores (NASDAQ:CASY) to $550 from $500 on Wednesday, while maintaining an Overweight rating on the convenience store operator. The stock, currently trading at $496.20, has shown remarkable momentum with a 50.85% return over the past year. According to InvestingPro data, the company’s RSI suggests the stock is in overbought territory, while trading at a relatively high P/E ratio of 30.
The price target increase follows Casey’s fourth-quarter fiscal results, which KeyBanc noted were strong despite negative impacts from poor February weather and the comparison against last year’s Leap Day. The firm highlighted strong fuel margins and market share gains as key drivers of the quarterly performance. With an EBITDA of $1.2 billion and a "GOOD" financial health score from InvestingPro, the company demonstrates solid operational efficiency.
KeyBanc identified Casey’s as one of its top investment ideas for 2025 and beyond, noting the company has "favorable momentum" in its underlying business. The firm’s analysis suggests Casey’s is positioned to generate 10-12% EBITDA growth while producing substantial free cash flow.
The research firm also pointed out that Casey’s implied fiscal year 2026 earnings per share guidance aligns with current consensus estimates. This outlook supports KeyBanc’s view of Casey’s as a "core growth holding."
Casey’s General Stores operates a chain of convenience stores primarily in the Midwestern United States, offering fuel, prepared food items, and grocery merchandise. The company has been expanding its footprint through both organic growth and acquisitions.
In other recent news, Casey’s General Stores reported impressive fourth-quarter results, with revenues growing 11% year-over-year. The company’s adjusted EBITDA and earnings per share exceeded consensus estimates, driven by stronger-than-expected fuel and inside margins. Casey’s fiscal year 2026 outlook projects 10-12% EBITDA growth, aligning with formal sell-side consensus estimates. Jefferies and Evercore ISI raised their price targets to $575 and $530, respectively, maintaining positive ratings due to Casey’s strong business model and accretive mergers. Goldman Sachs also increased its price target to $450, citing a 13% growth in fourth-quarter earnings per share, though it maintained a Neutral rating due to valuation concerns. BMO Capital raised its price target to $515, acknowledging Casey’s consistent EBITDA growth but maintained a Market Perform rating. RBC Capital maintained its Sector Perform rating, highlighting the company’s strong momentum and a 14% dividend increase. These developments reflect Casey’s robust financial performance and strategic positioning in the convenience store sector.
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