Cava Group initiated with a Buy at Stifel

Stifel analyst Chris O’Cull initiated coverage of Cava Group with a Buy rating and $48 price target. Cava is a “category-defining” Mediterranean fast casual brand that has expanded to 263 units since the first restaurant was opened in 2011, the analyst tells investors in a research note. The firm says the stock’s premium valuation can be justified by its unit count growth opportunity and the potential for solid operating momentum to cause upward revisions to near-term estimates.