Casey's General Stores (CASY) PT Raised to $405 at Evercore ISI
Evercore ISI analyst Michael Montani raised the price target on Casey's General Stores (NASDAQ: CASY) to $405.00 (from $370.00) while maintaining a Outperform rating.
The analyst comments "Casey’s is leaning into its crave worthy prepared meals at a compelling value in light of relatively aggressive pricing taken by key QSR competitors. While some larger burger chains are discussing enhanced value, Casey’s is betting that the franchise heavy models will ultimately struggle to sustain price reductions given a relative lack of scale from which to drive efficiency, as discussed at our HQ visit -see Leaning into Value, Delivering Flavor & Newness on 5/13. -We believe Casey’s focus on quality and newness (see multiple limited time offers/product re-launches in prepared food) at a compelling value is a winning recipe. We categorize CASY as a compounder with comp sales above peers (Fig 1) and an M&A kicker in a large and fragmented c-store industry (Fig 2). Key risks include a choppy lower income consumer, wage inflation, and rising cheese costs, yet we see Casey’s tenured management and differentiated offering as relatively well positioned. We are raising our CY25 EPS by 3% to $15.30 to reflect stronger topline momentum, and enhanced fuel profit (Fig 3). We believe CASY’s plan for 100+ store adds in F25 will prove conservative in light of the robust M&A pipeline."