CAVA Group (NYSE:CAVA) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan Chase raised its price target on CAVA from $80 to $90 and maintained an "overweight" rating, though that $90 target implies roughly a 6.5% downside from the stock's recent close.
• Analysts' consensus is a Moderate Buy with an average price target of $88.70, while several firms have initiated or raised coverage with targets up to $106, indicating generally bullish but varied views.
• CAVA traded around $96.27 after reporting a quarter that beat estimates (EPS $0.04 vs. $0.03; revenue $275M, +20.9% YoY), but the shares carry a high valuation (P/E ~178) and elevated volatility (beta 2.03).

CAVA Group (NYSE:CAVA - Get Free Report) had its target price lifted by equities researchers at JPMorgan Chase & Co. from $80.00 to $90.00 in a report released on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential downside of 6.51% from the company's previous close.

CAVA has been the subject of a number of other reports. Wolfe Research began coverage on CAVA Group in a report on Monday, March 9th. They issued an "outperform" rating and a $93.00 price target for the company. Citigroup boosted their price target on CAVA Group from $74.00 to $75.00 and gave the company a "neutral" rating in a report on Wednesday, February 25th. Royal Bank Of Canada boosted their price target on CAVA Group from $80.00 to $90.00 and gave the company an "outperform" rating in a report on Wednesday, February 25th. Roth Mkm initiated coverage on CAVA Group in a report on Tuesday. They issued a "buy" rating and a $106.00 price target for the company. Finally, Guggenheim initiated coverage on CAVA Group in a research note on Thursday, March 26th. They set a "buy" rating and a $100.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $88.70.

CAVA Group Trading Up 3.4%

CAVA stock traded up $3.16 during midday trading on Friday, hitting $96.27. 1,133,692 shares of the company's stock were exchanged, compared to its average volume of 3,436,404. CAVA Group has a 12-month low of $43.41 and a 12-month high of $101.50. The firm has a 50 day moving average price of $81.56 and a 200-day moving average price of $66.86. The stock has a market capitalization of $11.20 billion, a price-to-earnings ratio of 178.28, a price-to-earnings-growth ratio of 8.07 and a beta of 2.03.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its quarterly earnings results on Tuesday, February 24th. The company reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of $0.03 by $0.01. CAVA Group had a return on equity of 8.43% and a net margin of 5.40%.The business had revenue of $274.99 million during the quarter, compared to the consensus estimate of $268.04 million. During the same period in the previous year, the business earned $0.05 EPS. The business's quarterly revenue was up 20.9% on a year-over-year basis. On average, sell-side analysts forecast that CAVA Group will post 0.51 EPS for the current fiscal year.

Insider Activity at CAVA Group

In other CAVA Group news, CFO Tricia K. Tolivar sold 2,404 shares of the business's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total transaction of $149,384.56. Following the completion of the transaction, the chief financial officer owned 231,934 shares in the company, valued at approximately $14,412,378.76. The trade was a 1.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Brett Schulman sold 4,542 shares of the business's stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total value of $282,239.88. Following the transaction, the chief executive officer owned 802,783 shares of the company's stock, valued at $49,884,935.62. This trade represents a 0.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,460 shares of company stock worth $712,124 in the last ninety days. 6.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Cornerstone Planning Group LLC boosted its position in CAVA Group by 378.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 450 shares of the company's stock worth $27,000 after acquiring an additional 356 shares during the period. Los Angeles Capital Management LLC acquired a new stake in shares of CAVA Group in the fourth quarter valued at $25,000. Harbor Investment Advisory LLC lifted its holdings in shares of CAVA Group by 347.8% in the fourth quarter. Harbor Investment Advisory LLC now owns 515 shares of the company's stock valued at $30,000 after buying an additional 400 shares during the period. Western Pacific Wealth Management LP acquired a new stake in shares of CAVA Group in the third quarter valued at $33,000. Finally, CNB Bank lifted its holdings in shares of CAVA Group by 275.8% in the third quarter. CNB Bank now owns 575 shares of the company's stock valued at $35,000 after buying an additional 422 shares during the period. Institutional investors and hedge funds own 73.15% of the company's stock.

About CAVA Group

CAVA Group, Inc NYSE: CAVA is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.

Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe's Kitchen.

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