Goldman Sachs analyst Bonnie Herzog maintained a Hold rating on Casey’s General (CASY – Research Report) on March 11 and set a price target of $385.00.
Bonnie Herzog has given her Hold rating due to a combination of factors impacting Casey’s General. Despite the company reporting strong third-quarter earnings that exceeded expectations, driven by robust fuel volumes and a favorable tax rate, there are concerns about the sustainability of these results. The fuel margins were lower than anticipated, and the company’s valuation is currently at a significant premium compared to its peers, which suggests a more balanced risk-reward profile.
Additionally, while the inside sales growth was positive, it did not fully meet expectations, and the margins were slightly pressured by recent acquisitions and promotions. These factors contribute to a cautious outlook, as the stock is trading above its historical premium averages. As a result, the Hold rating reflects a wait-and-see approach, considering both the strong performance and the potential risks associated with the current valuation.
CASY’s price has also changed slightly for the past six months – from $373.380 to $378.710, which is a 1.43% increase.