Casey’s General Stores stock holds Sector Perform rating at RBC after strong Q1

Investing.com - RBC Capital maintained its Sector Perform rating and $542.00 price target on Casey’s General Stores (NASDAQ:CASY), currently trading near its 52-week high of $531.24, following the company’s strong first-quarter fiscal 2026 results.

Casey’s reported earnings per share of $5.77 for the quarter, representing a 20% year-over-year increase and exceeding RBC’s forecast by 14% and consensus estimates by 8%. The outperformance was primarily driven by stronger-than-expected gas volumes and margins, with inside store contribution slightly above forecasts. The company’s strong execution has contributed to an impressive 42.77% return over the past year, according to InvestingPro data.

Despite the strong quarterly performance, Casey’s management maintained its fiscal 2026 outlook unchanged, which RBC noted is not unusual for the company. The guidance points to EBITDA of $1.2-$1.344 billion, compared to RBC and consensus estimates of approximately $1.35 billion. InvestingPro analysis indicates the company maintains a GREAT financial health score, with particularly strong momentum metrics.

RBC highlighted that Casey’s continues to earn its valuation premium, supported by an attractive inside-store mix, unit growth cadence, geographic concentration, and strong operational expense controls.

The firm kept its fiscal 2026 and 2027 EBITDA estimates largely unchanged, maintaining the $542 price target on Casey’s stock.

In other recent news, Casey’s General Stores Inc. reported its first-quarter earnings for fiscal year 2026, revealing a strong financial performance. The company achieved earnings per share of $5.77, significantly surpassing the forecasted $5.03. Additionally, Casey’s revenue reached $4.58 billion, exceeding expectations of $4.48 billion. Despite the impressive earnings report, the stock experienced a decline in premarket trading. These recent developments highlight Casey’s ability to outperform financial projections. The earnings results are particularly noteworthy for investors monitoring the company’s financial health. Analysts had anticipated lower figures, making the actual results a positive surprise.

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