CAVA Group (NYSE:CAVA) Price Target Lowered to $85.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered CAVA Group’s price target to $85 from $95 while maintaining an “outperform” rating, implying 65.12% upside from the prior close.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $89.04, despite several recent target reductions.
• CAVA reported quarterly EPS of $0.19 versus estimates of $0.18 and revenue of $368.44 million, up 31.3% year over year; the stock opened at $51.48 and traded up 3.5%.

CAVA Group (NYSE:CAVA - Get Free Report) had its price objective dropped by equities researchers at Royal Bank Of Canada from $95.00 to $85.00 in a research note issued to investors on Thursday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective would indicate a potential upside of 65.12% from the company's previous close.

A number of other brokerages also recently weighed in on CAVA. Freedom Capital upgraded shares of CAVA Group to a "hold" rating in a report on Wednesday, July 1st. BMO Capital Markets set a $100.00 price target on CAVA Group in a research note on Wednesday, May 20th. KeyCorp reduced their price objective on CAVA Group from $110.00 to $95.00 and set an "overweight" rating for the company in a research report on Wednesday, August 12th. Seaport Research Partners assumed coverage on CAVA Group in a research note on Wednesday. They set a "buy" rating and a $58.00 price objective for the company. Finally, Roth Capital reissued a "buy" rating and issued a $95.00 target price (down from $106.00) on shares of CAVA Group in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $89.04.

CAVA Group Trading Up 3.5%

CAVA opened at $51.48 on Thursday. The company has a market cap of $6.01 billion, a price-to-earnings ratio of 93.18, a price-to-earnings-growth ratio of 3.88 and a beta of 1.74. The stock has a fifty day simple moving average of $64.83 and a two-hundred day simple moving average of $76.30. CAVA Group has a 12-month low of $43.41 and a 12-month high of $98.79.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.01. The firm had revenue of $368.44 million for the quarter, compared to analysts' expectations of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The company's quarterly revenue was up 31.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.16 EPS. On average, analysts predict that CAVA Group will post 0.55 EPS for the current year.

Insider Buying and Selling

In other CAVA Group news, insider Douglas Thompson bought 6,500 shares of CAVA Group stock in a transaction on Monday, August 31st. The stock was acquired at an average price of $66.52 per share, with a total value of $432,380.00. Following the acquisition, the insider owned 19,371 shares in the company, valued at approximately $1,288,558.92. This trade represents a 50.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 6.70% of the company's stock.

Institutional Investors Weigh In On CAVA Group

Several institutional investors have recently modified their holdings of the business. Engineers Gate Manager LP purchased a new stake in shares of CAVA Group during the 2nd quarter valued at about $670,000. NewEdge Advisors LLC grew its stake in shares of CAVA Group by 5.3% in the second quarter. NewEdge Advisors LLC now owns 13,050 shares of the company's stock worth $1,024,000 after acquiring an additional 656 shares during the period. Nykredit A S purchased a new position in shares of CAVA Group during the second quarter valued at approximately $272,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of CAVA Group during the second quarter valued at approximately $1,711,000. Finally, Ameritas Advisory Services LLC bought a new position in CAVA Group during the second quarter valued at approximately $2,492,000. 73.15% of the stock is owned by hedge funds and other institutional investors.

CAVA Group Company Profile

CAVA Group, Inc is a U.S.-based restaurant company that operates the CAVA fast-casual Mediterranean restaurant brand. Its restaurants offer customizable meals, including grain bowls, salads, pitas, dips, spreads and sides made with Mediterranean-inspired ingredients and flavors. Customers can order meals in restaurants, through digital channels and for catering.

The company's menu is centered on a build-your-own format, allowing guests to select proteins, grains, greens, toppings, sauces and dips.

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