Bank of America reiterated a Buy rating on Casey's General Stores while lowering its price objective to $875 from $975, arguing the roughly 14% post-earnings selloff has created an opportunity. Analyst Lisa K. Lewandowski said the reduced target reflects near-term remodeling noise, a cautious U.S. consumer, and a recent re-rating across convenience-store stocks, though the new target still implies about 39% upside from the $629.03 share price listed in the Sept. 9 note. Casey's reported fiscal first-quarter diluted earnings of $7.37 per share, up 27.7% from a year earlier, with net income climbing 27.1% to $273.7 million and EBITDA up 17.1% to $485.1 million; inside same-store sales rose 3.2% on a 42.2% inside margin, while fuel gross profit increased 19.6% to $446.9 million on a fuel margin of 47.8 cents per gallon. The company left its fiscal 2027 outlook unchanged, still expecting inside same-store sales growth of 2% to 5%, an inside margin above 42%, EBITDA growth of 8% to 10%, and at least 120 new stores through acquisitions and new construction. BofA estimates the conversion of acquired CEFCO stores, which require roughly four to six weeks of closures for kitchen and other upgrades, cut first-quarter inside same-store sales by about 25 basis points and fuel sales by about 50 basis points, a drag expected to continue through the fiscal third quarter, though remodeled locations typically see sales rise about 30% once reopened. BofA also raised its earnings estimates, forecasting EPS of $21.77 in fiscal 2027, $24.06 in fiscal 2028, and $26.64 in fiscal 2029, with the $875 target based on 18.9 times projected fiscal 2028 enterprise value to EBITDA.
Caseys General Stores IncBofA reiterates Buy and argues the ~14% post-earnings selloff created an opportunity, with the $875 target implying ~39% upside.
Bank of America CorpBofA is the analyst firm issuing the Buy rating and lowered price target on Casey's, not a subject of fundamental news about itself.
