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Investing.com - CFRA has reduced its price target on CAVA Group Inc (NYSE:CAVA) to $120.00 from $148.00 while maintaining a Strong Buy rating on the Mediterranean fast-casual restaurant chain. According to InvestingPro data, the stock currently trades at $69.25, with analyst targets ranging from $74 to $125.
The research firm cited expectations for slower comparable sales growth in 2025 due to softer consumer spending pressuring restaurant traffic across the industry.
CFRA lowered its earnings per share estimates to $0.65 from $0.74 for 2025 and to $0.91 from $1.00 for 2026, reflecting the anticipated slowdown in comparable store sales growth.
Despite the reduced price target, CFRA reiterated its Strong Buy rating based on CAVA’s long-term growth potential, noting the company continues to execute on strategic priorities including store openings, which increased 16.7% in the second quarter.
The firm highlighted CAVA’s operational improvements, including enhanced labor efficiency and supply chain optimization, with food costs remaining flat year-over-year despite inflationary pressures in the restaurant industry.
In other recent news, CAVA Group Inc has experienced several adjustments in analyst price targets following its second-quarter 2025 earnings report. BofA Securities lowered its price target for the company to $100 from $121, noting a modest revenue miss, with CAVA reporting $280.6 million compared to the expected $283.6 million. Piper Sandler also reduced its target to $100 from $122, citing slower-than-expected same-store sales growth of 2.1%, which fell short of the 6.0% consensus expectation. Similarly, Bernstein SocGen adjusted its target to $100 from $115, expressing concerns over negative same-store sales growth in newly opened locations. TD Cowen took a more cautious approach, lowering its target to $90 from $120, with concerns about the maturation trajectory of new store sales potentially affecting future growth. UBS provided a more conservative outlook, reducing its target to $75 from $96, highlighting challenges with same-store sales momentum and the impact of newer locations. These developments reflect the broader sentiment among analysts regarding CAVA Group’s recent performance and growth prospects.
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