Bernstein SocGen lowers CAVA Group stock price target to $100 on growth concerns

Published 14/08/2025, 16:08
Bernstein SocGen lowers CAVA Group stock price target to $100 on growth concerns

Investing.com - Bernstein SocGen Group has reduced its price target on CAVA Group Inc (NYSE:CAVA) to $100.00 from $115.00 while maintaining an Outperform rating. The fast-casual restaurant chain, currently trading at $67.32 with a market capitalization of $8.17 billion, has received a consensus "Buy" rating from analysts, with price targets ranging from $74 to $125.

The firm cited concerns about negative same-store sales growth (SSSG) in newly opened locations, which pressured system-wide comparable sales for the first time in the second quarter of 2025.

Bernstein SocGen specifically noted that the 2024 vintage of CAVA stores posted negative SSSG in Q2, potentially indicating significant pull-forward of demand in the first year or lower repeat business from consumers at new locations.

The research firm expressed caution that macroeconomic volatility could limit near-term upside potential, particularly given guidance that analysts view as "not conservative enough."

Despite these concerns, Bernstein SocGen continues to project CAVA will become the second-largest fast-casual restaurant chain in the United States, suggesting the recent stock pullback has already priced in most downside scenarios and created a more attractive entry point for long-term investors.

In other recent news, Cava Group Inc has been the subject of several analyst adjustments following its second-quarter results. The company reported a modest revenue of $280.6 million, which fell short of the analyst expectations of $283.6 million. Same-store sales growth was reported at 2.1%, significantly below the consensus forecast of 6.0%. As a result of these figures, several firms have adjusted their price targets for Cava Group. BofA Securities lowered its price target to $100 from $121, while maintaining a Buy rating. Piper Sandler also reduced its price target to $100 from $122, citing slower sales growth. Additionally, TD Cowen adjusted its price target to $90 from $120, expressing concerns about sales maturation. UBS and Baird have also lowered their price targets to $75 and $95, respectively, with UBS maintaining a Neutral rating and Baird an Outperform rating. These developments reflect a cautious outlook from analysts regarding Cava Group’s sales trajectory and financial performance.

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