Cava Group initiated with a Hold at Argus

Argus analyst Christine Dooley initiated coverage of Cava Group with a Hold rating. The company appears poised to take advantage of growth opportunities in its targeted Mediterranean niche as well as in the fast-casual segment of the restaurant industry, and the stock offers a profitable business model, clean balance sheet and an experienced management team, the analyst tells investors in a research note. Argus adds however that on valuation, Cava Group shares appear fairly valued at 150-times expected 2024 earnings.