Morgan Stanley has revised its price target for Cava Group (CAVA, Financial), reducing it from $130 to $115 while maintaining an Equal Weight rating on the company's shares. This adjustment comes as the firm updates its outlook ahead of the first-quarter earnings season.
The analyst at Morgan Stanley highlighted that the actual quarterly results might not be the primary focus. Instead, the firm has revised its forecast for U.S. industry demand downwards, now predicting a year-over-year growth of 4.1%, a decrease from the previously anticipated 4.8% set in January. This update follows the recent announcement of a tariff "pause," impacting expectations within the restaurant and food distribution sectors.
