Casey’s General Stores (NASDAQ: CASY) Upgraded Following Post-Earnings Selloff

• RBC Capital upgraded Casey’s General Stores (NASDAQ: CASY) to Outperform from Sector Perform while lowering its price target to $825 from $910.
• Casey’s reported diluted earnings per share of $7.37, up 27.7% year over year, while revenue increased 24.3% to $5.68 billion.
• Higher inside and fuel gross profit supported earnings, although weaker-than-expected same-store sales contributed to a sharp post-earnings decline.

Casey’s General Stores (NASDAQ: CASY) operates convenience stores that sell fuel, groceries, and prepared food. On October 15, 2026, RBC Capital analyst Irene Nattel upgraded the stock to Outperform from Sector Perform while lowering her price target to $825 from $910. Based on the October 14 closing price of $653.61, the new target implies potential upside of approximately 26.2%. 

In the first quarter of fiscal 2027, diluted earnings per share increased 27.7% to $7.37, exceeding analyst expectations. Revenue climbed 24.3% to approximately $5.68 billion. Revenue estimates varied by data provider, with some showing a modest beat and others indicating a slight miss. 

Higher inside and fuel gross profit supported the results, partly offset by an 8% increase in operating expenses. Grocery and general merchandise sales rose 4.9% to $1.28 billion, while same-store sales in that category increased 2.7%. Overall inside same-store sales advanced 3.2%, below analysts’ expectations, while prepared food and dispensed beverage same-store sales grew 4.8%. 

Energy-drink sales increased 12%, while nicotine alternatives grew 47% as Casey’s allocated more shelf space to the category. Casey’s private-label chip volumes also rose 16%, compared with an approximately 8% decline for national-brand chips. 

Despite the strong earnings growth, Casey’s shares fell sharply following the report because inside same-store sales missed expectations and the company maintained rather than raised its full-year outlook. RBC’s subsequent upgrade suggests the firm views the pullback as an attractive entry point, although its reduced price target reflects a more cautious valuation.