How Wall Street sees Casey’s
In this part of the series, we’ll look at Wall Street’s recommendations for Casey’s General Stores (CASY). We’ll also look at recent changes in ratings and recommendations.
CASY is rated by 13 Wall Street analysts. Ten of the 13 analysts rating Casey’s have given the company a “buy” recommendation. Three have given it a “hold,” and none have given it a “sell.”
Analyst ratings and target price
Casey’s stock is currently trading at $131.36. It’s close to the higher end of its 52-week price range of $98.80–$136.20. Wall Street sees a further upside potential and has assigned an average target price of $142.40. This indicates an upside of 8.4% over the next 12 months.
Sidoti & Company has assigned Casey’s the highest target price of $160, indicating an upside of ~22%. It has given the company a “buy” recommendation.
Coker & Palmer has assigned Casey’s the lowest target price of $111, indicating a downside of ~15%. It hasn’t rated the company.
Investors looking for exposure to Casey’s can invest in the ProShares S&P MidCap 400 Dividend Aristocrats (REGL), which has around 2.2% of its holdings invested in the company.
Recent rating changes
On June 29, 2016, Goldman Sachs upgraded Casey’s to a “buy” from a “neutral” rating and hiked its price target to $145. The broker cited rising biofuel prices and lower food costs as the key reasons behind the upgrade.
Analyst Stephen Grambling commented, “CASY is a purely domestic, stable compounder poised to benefit from higher RIN prices, ramping in-store initiatives, and lower food costs.” He said the company is well positioned to take advantage of a “fragmented c-store industry with low borrowing costs and limited financial leverage.”
On July 25, 2016, Bank of America Merrill Lynch initiated coverage on Casey’s General Stores with a “buy” rating.
Target prices and potential upsides and downsides of Casey’s peers
Based on Wall Street’s ratings and average target price, Murphy USA (MUSA) and Sunoco (SUN) currently have upsides of 15% and 17%, respectively, to their August 31, 2016, stock prices. CST Brands (CST), on the other hand, has been assigned a 12-month target price, which indicates a downside of 3.7%.
Now let’s move on to Wall Street’s estimates for the company. We’ll also look at Casey’s current valuations.