Piper Sandler lowers Cava Group stock price target to $100 on slower sales growth

Published 13/08/2025, 15:00
Piper Sandler lowers Cava Group stock price target to $100 on slower sales growth

Investing.com - Piper Sandler has reduced its price target on Cava Group Inc (NYSE:CAVA) to $100.00 from $122.00 while maintaining an Overweight rating on the Mediterranean fast-casual restaurant chain. According to InvestingPro data, analyst targets for CAVA now range from $74 to $125, with the stock currently trading at $70.60, near its 52-week low of $70.00.

The adjustment follows Cava’s second-quarter 2025 results, which revealed same-store sales growth of 2.1%, significantly below the consensus expectation of 6.0% that analysts had projected based on the company’s previous guidance.

In response to the disappointing quarterly performance, Cava has lowered its same-store sales guidance for the remainder of the year, prompting a sharp market reaction.

The stock dropped approximately 22% in after-hours trading following the earnings announcement and subsequent conference call.

Despite the reduced price target, Piper Sandler characterized the restaurant concept as "still quite healthy" in its analysis, explaining the target reduction as reflecting "multiple compression" rather than fundamental business concerns.

In other recent news, Cava Group has faced several adjustments to its stock price targets from various financial firms following its latest financial results. BofA Securities has lowered its price target to $100, citing a modest revenue miss with the company reporting $280.6 million against the expected $283.6 million. UBS also reduced its target to $75 due to slowing sales growth, maintaining a Neutral rating. Baird adjusted its target to $95, pointing to disappointing second-quarter comparable sales, though it remains optimistic about the brand’s long-term prospects. Jefferies set its new target at $100, acknowledging a same-store sales miss but noting an EBITDA beat driven by improved margins and lower expenses. KeyBanc Capital Markets lowered its target to $85, citing slower sales growth and missed same-store sales estimates. These developments highlight challenges Cava Group faces in maintaining its sales momentum amidst various market conditions.

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