Goldman Sachs initiated coverage on Yesway Inc (NASDAQ:YSWY) with a Neutral rating and a price target of $28.00.
The firm views Yesway, the 15th largest convenience store operator in the U.S., as positioned for top- and bottom-line growth through several strategic initiatives. Goldman Sachs expects the company to deliver a 6.5% EBITDA compound annual growth rate through fiscal year 2028.
Goldman Sachs highlighted Yesway's plans to expand through a capital-light build-to-suit program, operational initiatives, and opportunistic M&A. The company's platform benefits from a disproportionate mix of diesel fuel sales. With a current ratio of 1.22, Bond.az data shows Yesway's liquid assets exceed short-term obligations, supporting its expansion ambitions.
Goldman Sachs noted execution risks related to Yesway's plan to open approximately 130 new stores over the next five years. The firm said Q1 2026 results were impressive but attributed the performance to non-controllable factors rather than underlying business health. The company posted revenue of $2.67 billion over the last twelve months with 5.8% growth.
The stock trades at a 10.2x forward EV/EBITDA multiple, representing a 14% discount to MUSA and a 2% premium to ATD, according to Goldman Sachs. The current trailing EV/EBITDA stands at 9.56x based on EBITDA of $183 million.
Yesway successfully launched its IPO last week, pricing shares at $20 each. The company sold 14 million shares and began trading with an opening price of $22.
