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On Friday, Evercore ISI analyst Michael Montani increased the price target for Casey's General Stores (NASDAQ:CASY) shares to $470 from $460, while maintaining an Outperform rating. The new target approaches the analyst high of $490, with the stock currently trading near its 52-week high of $458.92. According to InvestingPro data, Casey's has demonstrated impressive momentum with a 42% return over the past year. Montani's assessment followed a series of store visits in Dallas, which reinforced his positive view on the company's strategic positioning and growth prospects.
Casey's General Stores is seen to stand strong despite an uncertain tariff environment, with opportunities for profitable market share expansion and strategic acquisitions. The company's robust financial health is evident in its $15.5 billion trailing twelve-month revenue and 6.56% revenue growth. Montani's report highlights the potential of Casey's following the visitation of two former CEFCO locations, one of which had been converted to Casey's format. The analyst praised CEFCO's prepared meal offerings and the overall quality of the acquired sites. InvestingPro analysis reveals 10+ additional insights about Casey's financial strength and growth potential.
The firm's financial forecast for Casey's General Stores remains above consensus for the fourth fiscal quarter and the upcoming year. The Outperform rating reflects the combination of innovative product offerings, smart mergers and acquisitions, and solid execution, which are particularly compelling against a fluctuating consumer landscape.
The raised price target to $470 is justified by better visibility on synergies from the CEFCO acquisition and the possibility of further bolt-on acquisitions. Montani's report also shared insights from the Texas store tours, detailing the top ten learnings and providing photographic evidence of the findings. Key takeaways from the tours include the strength of Casey's prepared meal options and the quality of the acquired locations, which are expected to contribute to the company's continued success.
In other recent news, Casey's General Stores reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $2.33, exceeding the forecasted $2.03. The company's revenue also surpassed expectations, reaching $3.9 billion against an anticipated $3.76 billion. RBC Capital Markets raised its price target for Casey's General Stores to $438, up from $430, while maintaining a Sector Perform rating. Analyst Irene Nattel noted the solid financial performance and strategic positioning of Casey's, highlighting contributions from the acquisition of Buchanan Energy and its Bucky's Convenience Stores.
BMO Capital Markets maintained a Market Perform rating on Casey's General Stores, with a steady price target of $450.00. BMO's analysis acknowledged the company's quarterly results, which surpassed expectations, and noted a slight year-over-year rise in consumer packaged goods margins after adjusting for recent acquisitions. Casey's General Stores continues to innovate, experimenting with adding wings to its prepared food selection. This development could serve as an additional growth driver, though BMO remains cautious about the stock's valuation.
The Fikes/CEFCO acquisition is expected to play a more prominent role in Casey's financials going forward, according to BMO's conservative projections. The company's effective tax rate decreased to 19.2%, enhancing profitability. Despite flat net income year-over-year, Casey's operational efficiency and strategic initiatives helped maintain a positive trajectory. The company's ongoing efforts to leverage strategic advantages and expected benefits from recent expansions underscore its unique market position.
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