Jefferies Reiterates Buy Rating on Susser Holdings (SUSS)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on Susser Holdings SUSS; it has a $14.00 price target on the stock. The Jefferies analysts cited the company’s recent earnings report, which was better than expectations due to better gas margins, improvement in West Texas, accelerating benefits from its remodels, and the company’s cost controls. The analysts expect the company to continue its outperformance. As for valuation, the Jefferies analysts remarked, “Our PT of $14 is ~6x our FY11 EBITDA estimate, in line with peers. This is slightly below our conservative DCF value of $17. Our PT also represents ~19x our FY11 EPS. Given the volatility in the fuel business, particularly on a quarterly basis, we rely more heavily on our annual EBITDA estimates and DCF.”