UBS lowered the firm’s price target on Cava Group (CAVA) to $75 from $96 and keeps a Neutral rating on the shares. Cava’s Q2 earnings report highlighted softer same-store sales momentum driven by the lapping of steak in 2024 and the impact from the performance of newer stores in Year 2 entering the comp base, the analyst tells investors in a research note. While strong Year 1 performance from new stores is encouraging, the negative drag on comps could pressure valuation and shares at least near-term, the firm says.
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