Cava Group initiated with a Neutral at UBS

UBS initiated coverage of Cava Group with a Neutral rating and $135 price target. Cava is the fast casual Mediterranean category leader, with a differentiated focus on healthy meals and broad consumer appeal, the analyst tells investors in a research note. The firm believes Cava should maintain solid traffic momentum but says the stock’s valuation already reflects elevated growth expectations. As such, it is looking for a better entry point.