Yesway Inc (YSWY) PT Raised to $32 at Guggenheim

Guggenheim analyst John Heinbockel raised the price target on Yesway Inc (NASDAQ: YSWY) to $32.00 (from $30.00) while maintaining a Buy rating.

The analyst commented: "Though the big, CPG-driven 2Q EBITDA beat drew most of the attention, we are more encouraged by an increasingly imminent acceleration in new unit expansion including the potential role of M&A optionality in a consolidating market. Given fuel market volatility and MUSA’s results (MUSA, $569.12, NC), we expected a robust print, a portion of which will likely be given back next year. However, the incremental $25 million of EBITDA will not be, which can be used to fund further expansion, most likely in the form of small-scale M&A. We are raising our 2026 EBITDA estimate 9% while leaving the out years unchanged, a potentially conservative assumption. The 15% rally, versus a flat S&P 500, was overdue, but the shares trade at just 9.8x our 2027E EBITDA—see Exhibit 1—or a 0.9x PEG, half that of the peers (CASY (CASY, $846.45, NC) and MUSA). With new unit growth stepping up in the 4Q, we reiterate our BUY rating with a raised $32 PT ($30 prior)."

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