Analyst Sara Senatore of Bank of America Securities reiterated a Buy rating on CAVA Group, Inc. (CAVA – Research Report), boosting the price target to $121.00.
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Sara Senatore has given her Buy rating due to a combination of factors that highlight CAVA Group, Inc.’s strong performance and growth potential. The company’s first-quarter results exceeded expectations, with a notable increase in same-store sales growth driven by higher customer traffic. This growth was achieved despite external challenges such as adverse weather conditions and fires in Los Angeles, indicating the company’s resilience and effective management strategies.
Furthermore, CAVA’s strategic initiatives, including menu innovations and successful advertising campaigns, are expected to sustain momentum in the coming quarters. The company’s ability to manage labor and operating costs effectively, even while investing in store and employee development, also contributes to a positive outlook. Additionally, the lower cost of capital, reflected in a reduced volatility measure, supports a higher price objective, reinforcing the Buy rating.
In another report released on May 16, Stifel Nicolaus also reiterated a Buy rating on the stock with a $175.00 price target.