UPDATE: Bank of America Color on Casey's General Stores PO Increase

Bank of America, which raised its PO on shares of Casey's General Stores Inc. (NASDAQ: CASY), is providing some color on the stock.

“Casey's recently reported same-store sales for the month of April, bringing estimated F4Q11 comps to ~11.8% in the prepared food & fountain category (vs. our 8% forecast) and ~5% in the grocery and other merchandise category (in-line with our 5% forecast),” Bank of America writes.

“Additionally, retail fuel margins are expected to exceed 13.5c/gal in F4Q11 (vs. our 13.2c forecast). We estimate that every 1c in additional c/gal profits could generate ~22c in EPS (on an annualized basis), or 5- 6c on a quarterly basis. Offsetting these positives, same store gallons were below our 1% forecast at (~1.8%), likely depressed due to rising gas prices (estimated +29% during the quarter).”

Casey's General Stores closed Friday at $39.60.