On Wednesday, BMO Capital adjusted its outlook on Casey\'s General Stores (NASDAQ:CASY), increasing the shares price target to $305 from the previous $290, while keeping a Market Perform rating. The firm highlighted Casey\'s General Stores\' potential for long-term growth, noting the company\'s market share gains in gallons and expanding competitive edge, especially in the prepared food segment.
The third fiscal quarter of 2024 showed that Casey\'s General Stores is on a solid path, with its strategies yielding market share gains. Despite the softer fuel margins observed in F3Q24 and February, which are traditionally weaker periods for fuel margins, the company\'s performance remains robust. BMO Capital pointed out that these margins are in line with seasonal expectations.
The analyst expressed caution regarding investor expectations for fuel margins, suggesting that there might be a discrepancy between the expectations of high-30s cents-per-gallon and the company\'s more modest mid-30s cents-per-gallon plan. This conservative stance by the management could mean there is limited room for error in fuel margin performance.
Casey\'s General Stores\' strategic position and operational strengths continue to be recognized, as reflected in the updated price target which suggests a positive view on the company\'s ability to maintain its growth momentum into the future.
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