- Raymond James lowers Casey's General Stores (CASY -1.5%) to a Market Perform rating after a strong YTD run in the retailer's share price.
- Analyst Bobby Griffin: "Importantly, our change in opinion is not a reflection of Casey's recent operating performance or management's capabilities but rather a factor of CASY's valuation versus its historical valuation and peers. Admittedly, we continue to believe that Casey's business model is unique (small town focus, large prepared food business) and offers a nice runway for unit growth (organic and tuck in M&A). That said, CASY's recent performance (up 23% YTD versus ~8% for the S&P 500 and 10% for MUSA and -7% of ATD.B) stretches its valuation and creates a more balanced risk/reward set up over the next few months, in our view."
- Griffin and team also think there could be some modest risk that near-term numbers are too high on Casey's.
- Casey's isn't due to report earnings until the first part of June (see consensus estimates).
- The Seeking Alpha Quant Rating on Casey's is at Neutral, with a low mark on value holding it back.
Casey's General Stores slips after Raymond James calls valuation stretched
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Symbol | Last Price | % Chg |
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CASY | - | - |
Casey's General Stores, Inc. |