12:16 PM EDT, 09/05/2024 (MT Newswires) -- Casey's General Stores' (CASY) fiscal 2025 is off to a "solid start," with the fiscal Q1 earnings per share of $4.83 exceeding market expectations, RBC Capital Markets said in a note Thursday.

The outperformance was largely due to fuel reflecting "marginally stronger than expected" gallons and cents per gallon, or CPG, the firm said.

The results reinforce RBC's belief about the company's "unique" positioning in lower-cost geographies and small markets.

"Strong gas margins sustained above 40 CPG and [0.7% higher same-store gallons sold] reinforce our view around sustainability of gas margins well above historical levels and resilience of gas demand in Casey's markets," the firm said.

RBC lifted the company's price target to $403 from $393 with a sector perform rating.

Casey's shares were up more than 6% in recent trading.

Price: 377.15, Change: +22.63, Percent Change: +6.38