UPDATE: Macquarie Capital Initiates Coverage on Casey's General Stores as Expansion Plans Warrant Conservatism

In a report published Friday, Macquarie Capital analyst Dane Leone initiated coverage on Casey's General Stores (NASDAQ: CASY) with a Neutral rating and $70.00 price target.

In the report, Macquarie Capital noted, “Casey's General Stores is a well-run Midwestern chain of convenience stores that operates its own logistics network for fuel and merchandise and has created a brand identity through fresh food offerings with Pizza. The company has considerable store remodelling opportunity within its current core markets around Iowa, but a planned expansion into new territory in the Southeast may create operational volatility and headwinds to operating profit growth, as the company is building a new distribution network. We rate the stock Neutral with a US$70.00 target price.”

Casey's General Stores closed on Thursday at $67.98.