Arko Petroleum initiated with a Strong Buy at Raymond James

Raymond James analyst Justin Jenkins initiated coverage of Arko Petroleum (APC) with a Strong Buy rating and $23 price target Arko Petroleum remains a compelling opportunity, and its asset-light, fee-based model and peer-leading cash flow conversion profile position it to generate durable discretionary cash flow and support a high and growing dividend, the analyst tells investors in a research note. Many of the perceived risks around fuel price fluctuations and quarterly earnings variability are reflected in valuation, while Arko’s scalable platform and strong supplier relationships enhance its competitive positioning, the firm argues.