Stephens raises PT on Casey's General Stores

Caseys General Stores

03/12/2025 12:35

** Stephens raises price target on convenience store chain operator Casey's General Stores CASY.O to $600 from $570, maintains "overweight" rating

     ** New PT a 5.9% upside to the stock's last close

     ** Stephens expects Q2 same-store sales of prepared foods & deli/bakery to grow 5.5% and in-store margins to show slight expansion y/y, driven by energy drinks and candies

     ** "Cheese costs could serve as a tailwind this quarter, with spot prices down 14% y/y during the period" - brokerage

     ** Sees CASY's operating expenses to rise 15% y/y the quarter, then slow to mid-single-digit growth as Fikes acquisition impact fades

     ** Nine of 14 brokerages rate the stock "buy" or higher and five "hold"; their median PT is $592.5 - according to data compiled by LSEG

     ** As of last close, shares up 43.1% YTD

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)

 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))