Cava Group upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Brian Harbour upgraded Cava Group to Overweight from Equal Weight with a price target of $41, down from $45. The analyst says consumer softness has been “amply priced in” with the shares off 35% since mid-July. The firm has more confidence in Cava’s catalyst path and near term estimates, as well as its long term fundamental growth story. A small early lockup expiration in September, presumably some initial public offering holders selling, and higher short interest has affected Cava, but this pressure is lessening, the analyst tells investors in a research note. The firm says Cava has better traffic trends than several peers.