Guggenheim starts Cava at Buy on ‘robust’ fundamentals

Guggenheim analyst Gregory Francfort initiated coverage of Cava Group (CAVA) with a Buy rating and $100 price target While the stock’s valuation “is high,” Cava’s fundamental business drivers “are robust,” the analyst tells investors in a research note. The firm projects 24% revenue annual revenue growth and 32% annual EBITDA growth through 2028. Cava’s easier comparisons beyond Q1 should support momentum for the balance of the year, contends Guggenheim. The firm sees accelerating same-store-sales and positive earnings revisions driving the stock higher from current levels.