Casey’s General Stores initiated with a Hold at Gordon Haskett after 44% rally

Gordon Haskett analyst Chuck Grom initiated coverage of Casey’s General Stores (CASY) with a Hold rating and $400 price target which “appropriately balances” the firm’s favorable view of the convenience store industry, Casey’s differentiated value proposition, and conviction in the company’s execution against elevated valuation levels, persistent external risks, and the likelihood that structural tailwinds may have already peaked, particularly on the gas side of the business. Following the 44% year-to-date move higher in shares, the firm sees “a lot of love” for what it views as a “solid story out of Iowa,” the analyst tells investors. The firm views the company’s long-term algorithm of an 8%-10% EBITDA growth compound annual growth through FY26 as “a reasonable target,” the analyst added.