CASY - Casey's General Stores stock rises as Northcoast moves to Buy
2023-04-14 11:25:28 ET
Casey’s General Stores ( NASDAQ: CASY ) shares edged higher on Friday as Northcoast Research highlighted “extraordinarily strong fuel profitability.”
“Each of its three quarters reported thus far have exceeded $0.40 per gallon in gross margin. Never before had the company exceeded $0.40,” equity analyst Chuck Cerankosky told clients. “We expect ongoing growth from its Grocery and Prepared Foods segments, as well as the company’s demonstrated ability to successfully integrate acquisitions of smaller convenience store groups.”
He hiked his EPS targets for 2023 and 2024 even while accounting for some normalization. He added that the Prepared Foods segment is recovering strongly as well, with inflation bolstering a trade down to private label “where Casey’s enjoys much fatter gross margins in its Grocery
Segment.”
He assigned a $270 price target to the stock alongside the upgrade to Buy. Shares of the Iowa-based convenience store operators rose 1.73% on Friday.
Read more on the company’s most recent earnings report .
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Casey’s General Stores stock rises as Northcoast moves to Buy