Sunoco (SUN) May Be a Takeover Target with Its Lucrative Retail Operations - Cramer (CASY)

Jim Cramer, after the announcement of a bid for Casey's (NASDAQ: CASY), said that Sunoco (NYSE: SUN) is a likely takeover target.

Although the Sunoco hasn't made any mention to being up for sale, each of Casey's stores were valued at about $1.3 million, meaning that Sunoco could bank on its 4,711 gas stations and convenience stores should a deal be brought up.

Currently, Sunoco has a market cap of $3.6 billion, and 52% of their sales come from oil refining. Only 33% of sales some from their retail locations, which makes Cramer think that the sum of Sunoco's parts might be greater than the whole.

Additionally, of the analysts that cover the company, only one gives it a Buy rating, while 11 have a Hold, and three recommend to Sell. Because of this, Jim believes that getting into the company would be a smart move before the Street realizes the true value of this "little gem."

Sunoco is trading up 2.02% to $30.79 early this morning.

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