Casey's General Stores' (CASY) fiscal Q1 results put the company "on strong footing" to reach fiscal its 2027 outlook, RBC Capital Markets said in a note emailed Wednesday.
The company's strong execution as well as fuel margins took Q1 EPS to $7.37, up 28% year on year, and 9% above the consensus estimate despite same-store sales that were a "dipstick shy" of forecast, the note said.
RBC noted, however, the slight "squishyness" in Casey's grocery and general merchandise segment indicates the company is "not entirely immune to the consumer spending headwinds being felt across the sector."
Meanwhile, the company's Q1 results put it on the path to reach the implied fiscal 2027 EBITDA outlook of $1.6 billion to $1.63 billion compared with the pre-release RBC estimate of about $1.62 billion and the consensus estimate of $1.64 billion, "notably on higher fuel margins," the note said.
RBC said Casey's is still earning its "valuation premium, underpinned by attractive inside-store mix, unit growth, geographic concentration, strong opex controls."
RBC has a sector perform rating on Casey's and decreased the company's price target to $910 from $913.
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