Cava Group price target raised to $80 from $53 at Loop Capital

Loop Capital analyst Alton Stump raised the firm’s price target on Cava Group to $80 from $53 but keeps a Hold rating on the shares. The company reported a “sharp” Q1 EBITDA beat and “solid” comps that grew 2.3%, though its EBIT margin of 25.2% was below its 26.1% forecast as higher labor costs slightly more than offset lower input costs and the positive comparable sales growth, the firm tells investors in a research note. Cava deserves to trade at a substantial premium to its peer group average given the company is in the early stages of its unit growth story, but its positive attributes are already reflected in the stock’s current valuation, Loop adds.