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NEW YORK, June 20 (Reuters) - Shares of The Pantry Inc PTRY.O have potential upside, Barron's reported on Sunday, as the convenience store operator may be an attractive takeover target.
The Pantry, which operates the Kangaroo Express convenience stores, have been trading at a much lower multiple than the one implied by a recent hostile bid for rival Casey's General Stores Inc (CASY.O) by Canada's Alimentation Couche-Tard Inc [ATD.UL], Barron's said.
While it is unlikely that The Pantry could trade at the same multiple as Casey's, it could close some of the gap, Barron's said, adding that convenience stores have not consolidated as much as other sectors of retail. (Reporting by Martinne Geller; Editing by Marguerita Choy)