CAVA Group, Inc. (CAVA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Brian Harbour from Morgan Stanley maintained a Hold rating on the stock and has a $135.00 price target.
Brian Harbour has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing CAVA Group, Inc. While the company’s fourth-quarter performance was strong and aligned with expectations, the potential for upward estimate revisions appears limited. The start of FY25 seems solid, which is encouraging for the year ahead, but the stock remains high in valuation, and growth momentum challenges persist separately from the company’s fundamentals.
Despite the positive aspects, such as a slight profit beat driven by G&A discipline, the FY25 guidance is slightly below current consensus on key metrics like RLM and EBITDA. The company’s guidance appears conservative, with a slower start expected compared to peers, and consumer health remains a debated issue. Overall, while there is more upside to the price target due to recent stock underperformance, the combination of these factors supports a Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $104.00 price target.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CAVA in relation to earlier this year.