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Investing.com - Wells Fargo raised its price target on Casey’s General Stores (NASDAQ:CASY) to $580.00 from $540.00 on Wednesday, while maintaining an Overweight rating on the convenience store operator. The stock, currently trading at $541.30, sits near its 52-week high of $543.20 and has delivered an impressive 42% return over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with current valuation metrics suggesting careful consideration.
The firm cited strong organic growth trends and potential earnings upside despite consensus estimates already reaching the upper end of Casey’s EBITDA guidance. Wells Fargo noted that Casey’s current quarter EBITDA is likely growing in the mid-teens percentage range when excluding the Fikes acquisition. The company’s last twelve months EBITDA stands at $1.26 billion, with revenue growth of 8.74%. InvestingPro data reveals the company maintains a GREAT overall financial health score, with particularly strong marks in profit and price momentum metrics.
Wells Fargo highlighted several growth catalysts that could support Casey’s performance, including the company’s wings rollout, Zyn tobacco product promotions, and favorable product mix. The Fikes acquisition is progressing well, with most of its earnings accretion expected in fiscal 2026.
The research firm models a 13% EBITDA growth for Casey’s but suggests mid-teens growth is possible. Wells Fargo’s new price target represents approximately 34 times its next-twelve-month earnings per share estimate.
Casey’s stands out in what Wells Fargo describes as a "generally poor c-store backdrop," with potential catalysts including an upward guidance revision likely in the fiscal second quarter, additional wing rollout news, and the possibility of larger merger and acquisition activity as the company begins its next three-year plan.
In other recent news, Casey’s General Stores reported strong financial results for the first quarter of fiscal year 2026. The company achieved earnings per share of $5.77, significantly surpassing the consensus estimate of $5.02, and reported a revenue of $4.58 billion, exceeding the expected $4.48 billion. Analysts have responded positively to these results, with Jefferies raising its price target for Casey’s to $600 while maintaining a Buy rating. BMO Capital also increased its price target to $540, citing solid comparable store sales and traffic growth, and maintained a Market Perform rating. RBC Capital kept its Sector Perform rating and $542 price target, noting a 20% year-over-year increase in earnings per share, driven by stronger-than-expected gas volumes and margins. These developments highlight Casey’s robust financial performance and the positive reception from analysts.
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