TD Cowen analyst Andrew Charles has maintained their bullish stance on CAVA stock, giving a Buy rating on August 9.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Charles has given his Buy rating due to a combination of factors that highlight the potential growth and strong performance of CAVA Group, Inc. Despite a challenging sales environment, the company has shown impressive new store sales strength, which indicates the brand’s increasing market adaptability. The new store economics are particularly promising, with first-year average unit volumes surpassing expectations and generating substantial cash returns, reinforcing management’s ambitious expansion goals.
However, there are some risks, such as the stock being potentially undervalued until more clarity is provided on the maturation of new store sales. The company has adjusted its 2025 same-store sales forecast downward, reflecting broader economic uncertainties and tougher year-over-year comparisons. Nonetheless, positive trends in recent months and strategic initiatives like the introduction of new menu items suggest potential for traffic reacceleration, supporting the overall positive outlook.
In another report released on August 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $96.00 price target.