In a significant development, Bernstein analyst Danilo Gargiulo has upgraded Cava Group (CAVA, Financial) to an "Outperform" rating from "Market Perform," maintaining a price target of $115. This decision comes following a notable 30% decline in Cava's stock value year-to-date. The analyst argues that despite this downturn, there has been no significant weakening in the company's long-term strategic vision.
Cava Group, according to Bernstein, is strategically well-placed to thrive even as market growth slows. The analysts express confidence in the company's ability to navigate economic challenges, citing a robust year-to-date sales performance and projecting a 6% to 8% increase in same-store sales by 2025. This projection accommodates a slowdown in the latter half of the year, yet reflects Cava's potential to achieve a 10% growth in same-store sales.
The firm highlights Cava's strategic advantage in capturing a larger market share even amidst uncertainties. Unlike many of its peers in the consumer sector, Cava is expected to maintain its growth guidance, showcasing its resilience against prevailing market concerns.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Cava Group Inc (CAVA, Financial) is $118.64 with a high estimate of $175.00 and a low estimate of $100.00. The average target implies an upside of 45.93% from the current price of $81.30. More detailed estimate data can be found on the Cava Group Inc (CAVA) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Cava Group Inc's (CAVA, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
