Andy Barish, an analyst from Jefferies, reiterated the Buy rating on CAVA Group, Inc. (CAVA – Research Report). The associated price target is $148.00.
Andy Barish has given his Buy rating due to a combination of factors that highlight CAVA Group, Inc.’s potential for growth and profitability. The company demonstrated strong same-store sales momentum in the fourth quarter, driven by significant traffic growth and a positive mix of menu pricing and innovation. Although the initial guidance for 2025 was slightly conservative, there remains optimism for continued traffic growth supported by ongoing innovation and productivity improvements.
Furthermore, CAVA’s new store productivity has exceeded expectations, prompting an increase in targets for average unit volumes. Despite some margin challenges, there are opportunities for improvement as operational efficiencies are realized over time. The current stock pullback presents an attractive entry point for investors, as CAVA is still in the early stages of its growth trajectory, with long-term targets offering visibility into substantial EBITDA growth. These factors collectively underpin Barish’s Buy rating and the revised price target of $148.
Barish covers the Consumer Cyclical sector, focusing on stocks such as Starbucks, McDonald’s, and Cheesecake Factory. According to TipRanks, Barish has an average return of 10.6% and a 56.91% success rate on recommended stocks.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $175.00 price target.