Cava Group price target lowered to $80 from $100 at Bernstein

Bernstein lowered the firm’s price target on Cava Group (CAVA) to $80 from $100 and keeps an Outperform rating on the shares. While the firm remains bullish longer-term, the past two quarters have proved that Cava, like its fast casual peers, is not immune to macro pressures. Bernstein expects near-term choppiness to be even more elevated for Cava, especially in an increasingly promotional environment, given the drag on low- and middle-income consumers, who comprise about 40% of Cava’s customer base, and higher DMV exposure amidst the government shutdown. Despite these headwinds, the firm believes that Cava’s current investments will set the stage for long-term growth, albeit there may be near-term RLM compression.