Royal Bank Of Canada Forecasts Strong Price Appreciation for CAVA Group (NYSE:CAVA) Stock

Key Points

• Royal Bank of Canada raised its price target on CAVA to $100 (from $90) and kept an "outperform" rating, implying about a 7.65% upside from the prior close.
• Analyst consensus shows a Moderate Buy stance with an average target of $89.07 (1 Strong Buy, 16 Buy, 11 Hold, 1 Sell).
• CAVA traded at $92.90 (down ~0.6%) with a market cap of $10.81 billion and a high valuation (P/E ~172.9); it recently beat quarterly revenue and EPS estimates (revenue $274.99M, EPS $0.04, revenue +20.9% YoY) and analysts forecast ~0.52 EPS for the year.

CAVA Group (NYSE:CAVA - Get Free Report) had its target price raised by equities research analysts at Royal Bank Of Canada from $90.00 to $100.00 in a report released on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target points to a potential upside of 7.65% from the company's previous close.

Other analysts have also issued research reports about the company. Johnson Rice set a $72.00 price objective on CAVA Group in a research report on Monday, January 5th. Mizuho upped their price objective on CAVA Group from $72.00 to $80.00 and gave the stock a "neutral" rating in a research report on Thursday, April 2nd. Telsey Advisory Group upped their price objective on CAVA Group from $85.00 to $88.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 25th. Truist Financial upped their price objective on CAVA Group from $80.00 to $85.00 and gave the stock a "buy" rating in a research report on Wednesday, February 25th. Finally, Barclays upped their price objective on CAVA Group from $52.00 to $70.00 and gave the stock an "equal weight" rating in a research report on Wednesday, January 7th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $89.07.

CAVA Group Stock Down 0.6%

NYSE:CAVA traded down $0.52 during trading hours on Friday, reaching $92.90. 901,975 shares of the stock were exchanged, compared to its average volume of 3,366,073. The business has a 50-day moving average of $84.33 and a two-hundred day moving average of $67.89. CAVA Group has a twelve month low of $43.41 and a twelve month high of $101.50. The company has a market capitalization of $10.81 billion, a price-to-earnings ratio of 172.87, a PEG ratio of 6.49 and a beta of 2.03.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.04 EPS for the quarter, topping 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 company had revenue of $274.99 million for the quarter, compared to analysts' expectations of $268.04 million. During the same period in the prior year, the firm earned $0.05 earnings per share. The firm's revenue was up 20.9% compared to the same quarter last year. On average, research analysts forecast that CAVA Group will post 0.52 EPS for the current fiscal year.

Hedge Funds Weigh In On CAVA Group

Several large investors have recently bought and sold shares of CAVA. Liontrust Investment Partners LLP acquired a new position in CAVA Group in the third quarter valued at $43,189,000. Leibman Financial Services Inc. boosted its stake in CAVA Group by 162.9% in the fourth quarter. Leibman Financial Services Inc. now owns 67,324 shares of the company's stock valued at $3,951,000 after acquiring an additional 41,712 shares in the last quarter. Alliancebernstein L.P. boosted its stake in CAVA Group by 118.3% in the third quarter. Alliancebernstein L.P. now owns 2,953,688 shares of the company's stock valued at $178,432,000 after acquiring an additional 1,600,630 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in CAVA Group by 57.7% in the third quarter. Envestnet Asset Management Inc. now owns 222,499 shares of the company's stock valued at $13,441,000 after acquiring an additional 81,393 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in CAVA Group by 20.4% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 103,706 shares of the company's stock valued at $6,265,000 after acquiring an additional 17,600 shares in the last quarter. Hedge funds and other institutional investors 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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