Investing.com - 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.
The firm highlighted Yesway’s plans to expand through a capital-light build-to-suit program, operational initiatives, and opportunistic mergers and acquisitions. The company’s platform benefits from a disproportionate mix of diesel fuel sales. With a current ratio of 1.22, InvestingPro 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 the company’s first quarter 2026 results were impressive but attributed the performance to non-controllable factors rather than underlying business health. The company has 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.
In other recent news, Yesway has successfully launched its initial public offering, pricing its shares at $20 each. The company sold 14 million shares and began trading with an opening price of $22. Yesway has also granted underwriters a 30-day option to purchase up to an additional 2.1 million shares at the IPO price, excluding the underwriting discount. The IPO was set to price within a $20 to $23 range and was reportedly 10 times oversubscribed, indicating strong investor interest. The shares are now listed on the Nasdaq exchange. These developments mark significant milestones for Yesway as it enters the public market.
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