NEW YORK (TheStreet) -- CST Brands (CST)  stock closed up 3.48% to $42.21 in afternoon trading Wednesday after Credit Suisse had increased its price target to $44 from $40, while maintaining a "neutral" rating. 

"We expect CST to be active on the acquisition front with CrossAmerica (CAPL) - Get Report, particularly after May 1, as the separation agreement with Valero expires," analysts said about the transportation fuels and convenience goods retailer.

However, if margins do not recover to averages of the previous two to three years, U.S. gasoline margin progression poses a potential risk to CST Brands, Credit Suisse added.

Driven by the drop down of CST's gasoline distribution margins into CrossAmerica, target valuation also contemplates nearly $6 per share, analysts said.

Credit Suisse lowered their 2015 fiscal earnings forecast to $1.77 from $1.90 per share, but increased 2016 earnings estimates to $2.12 from $1.99 per share.

Separately, TheStreet Ratings team rates CST BRANDS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CST BRANDS INC (CST) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• Powered by its strong earnings growth of 175.00% and other important driving factors, this stock has surged by 28.56% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 176.5% when compared to the same quarter one year prior, rising from $34.00 million to $94.00 million.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, CST BRANDS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
• The gross profit margin for CST BRANDS INC is currently extremely low, coming in at 7.40%. Regardless of CST's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.48% trails the industry average.
• The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management.

• You can view the full analysis from the report here: CST Ratings Report