Cava Group (CAVA) stock plummeted on Wednesday after analysts updated their coverage of the fast-casual dining company’s shares following its latest earnings report. A big reason for this was same-store sales that came in below estimates, despite the company beating earnings per share and revenue estimates.
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This triggered several price target cuts from Wall Street. Let’s dig into that below!
- Five-star KeyBanc analyst Christopher Carril lowered his price target to $85 from $100 and maintained an Overweight rating.
- Four-star Barclays analyst Jeff Bernstein cut his price target to $74 from $91 and kept an Equal Weight rating.
- Piper Sandler analysts dropped their price target to $100 from $122 and reiterated an Overweight rating.
- Citi analysts reduced their price target to $88 from $102 and stuck with a Neutral rating.
- Morgan Stanley analyst Brian Harbour slashed his price target to $97 from $107 and maintained an Equal Weight rating.
- Baird analysts decreased their price target to $95 from $115 and kept an Outperform rating.
- Bank of America analysts shrank their price target to $100 from $121 and reiterated a Buy rating.
Another blow to CAVA stock was the company’s updated guidance in its latest earnings report. It expects same-store sales growth of 4% to 6%, down from its prior outlook of 6% to 8%.
Cava Stock Movement Today
Cava stock was down 16.45% on Wednesday morning, extending a 37.3% year-to-date drop. The shares have also fallen 11.76% over the past 12 months.
While earnings may have disappointed, this pullback could present a buying opportunity for investors. Five-star Stifel analyst Chris O`Cull argued earnings were a “temporary setback, not a change in the fundamental outlook.” He maintained a $125 price target and Buy rating for CAVA stock.
Is Cava Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Cava is Moderate Buy, based on 10 Buy and seven Hold ratings over the past three months. With that comes an average CAVA stock price target of $104.87, representing a potential 50.89% upside for the shares.
