Northcoast starts Cava Group at Sell on ‘lofty’ valuation

Northcoast initiated coverage of Cava Group (CAVA) with a Sell rating and $63 price target The firm says the stock’s valuation “has gotten ahead” of Cava’s “own potential.” The biggest risk to Cava’s “lofty” valuation is declining organic sales over time, which would pressure its pricing power, the analyst tells investors in a research note. Cava shares in premarket trading are down 2% to $95.03 following the initiation.