Casey's General Stores (CASY) PT Lowered to $337 at Deutsche Bank, 'Pizza & Beer Pair Well With (Operating) Profits'

Deutsche Bank analyst Paul Trussell lowered the price target on Casey's General Stores (NASDAQ: CASY) to $337.00 (from $344.00) while maintaining a Buy rating.

The analyst comments "CASY delivered a solid 3Q print with EPS coming in 9% above consensus on strong inside-store SSS growth and margins, along with well-managed operating expenses, showcasing the resilience of the company’s business model. The strength in CASY’s prepared food business across pizza (+11% vs. the top three pizza peers +2.5%), bakery, and dispensed beverage highlights the relative value CASY offers, particularly for price-conscious consumers. We think CASY’s strong value meal solutions will continue to fuel its inside-store results and take market share from QSRs. These positives were somewhat overshadowed by weaker fuel profitability both in 3Q and February, and opex growth implied to be up LDD in 4Q on expense timing shifts. All in, we remain constructive on CASY and highlight: 1) a compelling prepared food offering that presents a quality, value alternative to QSR; 2) unit growth well on track to achieve 350 new stores by 2026 and optionality to build or acquire new units, based on the economics; 3) improving in-store efficiencies, leading to further reduction in labor hours; and 4) opportunity to leverage its loyalty platform. Buy "

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