Casey's General Stores, Murphy USA Boosting Food, Beverage Offerings to Drive In-Store Sales, BofA Says

MT Newswires Live01-10

Convenience stores like Casey's General Stores (CASY) and Murphy USA (MUSA) are boosting their offerings, including food and beverage, to drive in-store sales and trips as cigarette sales decline, BofA Securities said in a Friday note.

Relaunching coverage on individual operators, BofA said Casey's is seeing a strong prepared foods business, as well as fuel outperformance regionally. The company comes across one of the few quality food options, with the company's footprint mostly present in rural middle America, according to the note.

Looking at Murphy USA, BofA said it believes that the company's near-term upside will likely be underperforming versus its peers due to the company's dependence on fuel and nicotine.

Positives on Murphy USA included its long-term strategy, lean operational structure, and locations adjacent to Walmart (WMT), BofA said.

BofA rated Casey's as buy with a $700 price target, and Murphy USA as underperform with a $405 price target.

Price: 598.02, Change: +11.64, Percent Change: +1.99

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment