CAVA Group (NYSE:CAVA) Raised to Moderate Buy at Royal Bank Of Canada

Key Points

• CAVA Group has been upgraded to a "moderate buy" rating by Royal Bank of Canada, reflecting growing analyst confidence following recent performance reviews.
• Despite CAVA's share price being cut by multiple brokerages, the stock has a consensus rating of "moderate buy" and a price target of $95.50 according to MarketBeat.
• CAVA Group reported a 20.2% increase in revenue year-over-year, with earnings per share of $0.16 for its latest quarter, surpassing the consensus estimate.

CAVA Group (NYSE:CAVA - Get Free Report) was upgraded by research analysts at Royal Bank Of Canada to a "moderate buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other brokerages have also issued reports on CAVA. KeyCorp cut their price target on CAVA Group from $100.00 to $85.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 13th. Cfra Research raised CAVA Group to a "strong-buy" rating in a research note on Thursday, August 14th. TD Cowen cut their target price on CAVA Group from $120.00 to $90.00 and set a "buy" rating on the stock in a research note on Wednesday, August 13th. Piper Sandler cut their target price on CAVA Group from $122.00 to $100.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 13th. Finally, Bank of America cut their target price on CAVA Group from $121.00 to $100.00 and set a "buy" rating on the stock in a research note on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $95.50.

CAVA Group Stock Up 2.8%

Shares of CAVA opened at $64.92 on Wednesday. CAVA Group has a 12-month low of $58.33 and a 12-month high of $172.43. The firm has a market capitalization of $7.53 billion, a PE ratio of 54.56, a price-to-earnings-growth ratio of 3.16 and a beta of 2.50. The stock's fifty day simple moving average is $68.55 and its 200-day simple moving average is $79.94.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its quarterly earnings results on Tuesday, August 12th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.03. CAVA Group had a return on equity of 9.83% and a net margin of 12.98%.The business had revenue of $280.62 million for the quarter, compared to analyst estimates of $285.65 million. During the same quarter in the prior year, the firm posted $0.17 earnings per share. The firm's revenue for the quarter was up 20.2% compared to the same quarter last year. Analysts anticipate that CAVA Group will post 0.5 EPS for the current year.

Institutional Investors Weigh In On CAVA Group

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in shares of CAVA Group by 13.2% in the first quarter. Vanguard Group Inc. now owns 9,065,782 shares of the company's stock worth $783,374,000 after acquiring an additional 1,054,180 shares in the last quarter. Jennison Associates LLC grew its holdings in shares of CAVA Group by 246.1% during the first quarter. Jennison Associates LLC now owns 8,519,459 shares of the company's stock worth $736,166,000 after buying an additional 6,057,727 shares in the last quarter. State Street Corp grew its holdings in shares of CAVA Group by 5.0% during the second quarter. State Street Corp now owns 2,543,335 shares of the company's stock worth $214,225,000 after buying an additional 122,163 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of CAVA Group by 114.4% during the first quarter. Price T Rowe Associates Inc. MD now owns 2,394,561 shares of the company's stock worth $206,915,000 after buying an additional 1,277,912 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of CAVA Group by 16.2% during the second quarter. Geode Capital Management LLC now owns 1,622,898 shares of the company's stock worth $136,715,000 after buying an additional 226,785 shares in the last quarter. 73.15% of the stock is currently owned by institutional investors.

About CAVA Group

CAVA Group, Inc owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc was founded in 2006 and is headquartered in Washington, the District of Columbia.

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