BMO Capital analyst Kelly Bania maintained a Market Perform rating on Casey's General Stores and raised the price target to $950 from $700. The adjustment reflects a revised outlook on the company's valuation and sector position.

Rating and Target Changes

The firm increased the price target significantly, moving from the previous level of $700 to the new target of $950. The Market Perform rating remains unchanged.

Casey's General Stores, Inc. reported financial results for the three months and year ended April 30, 2026, achieving record fiscal 2026 performance with net income of $714.4 million, an increase of 30.7% from the prior year. Diluted earnings per share (EPS) reached $19.16, a 30.9% increase, while EBITDA grew 23.6% to nearly $1.5 billion. The company's strong results were driven by a 10.2% increase in total inside sales and a 21% rise in fuel gross profit, supported by strategic pricing and operational efficiency.

For the fourth quarter, diluted EPS was $4.37, a 66.2% increase from the same period a year ago, beating analyst estimates. Quarterly sales were $4.57 billion, up 14.51% year-over-year. Net income for the quarter was $162.7 million, an increase of 65.5%, and EBITDA was $350.3 million, an increase of 33.2%. Inside same-store sales rose 5.5% with a margin of 42.4%, while fuel same-store gallons increased 1.5% with a margin of 46.9 cents per gallon.

"Casey's delivered another record fiscal year as our team closed out the three-year strategic plan on an extremely high note, reaching $714 million of net income and nearly $1.5 billion of EBITDA," said Darren Rebelez, President and CEO. "Inside same-store sales for the year were extremely strong, up 4.2%, or 7.0% on a two-year stack basis, led by strong performance in prepared foods and non-alcoholic beverages."

Fourth Quarter and Fiscal Year 2026 Results

Capital Allocation and Outlook

In June, the Board of Directors authorized an expansion of its existing share repurchase program up to a total amount of $1 billion, leaving $1 billion remaining under the updated authorization. During the quarter, the company repurchased approximately $63 million of shares. The Board also voted to increase the quarterly dividend by 14% to $0.65 per share, payable August 14, 2026, to shareholders of record on August 1, 2026.

For fiscal 2027, Casey's expects inside same-store sales to increase 2% to 5% with an inside margin above 42%. The company anticipates opening at least 120 stores through an even mix of acquisitions and new builds. EBITDA is expected to increase 8% to 10%, while total operating expenses are projected to rise approximately 5% to 7%. Net interest expense is expected to be approximately $95 million, and depreciation and amortization is expected to be approximately $490 million.