Andrew Charles, an analyst from TD Cowen, maintained the Buy rating on CAVA Group, Inc. (CAVA – Research Report). The associated price target was lowered to $120.00.
Andrew Charles has given his Buy rating due to a combination of factors that highlight the potential upside for CAVA Group, Inc. Despite the stock being approximately 50% below its peak, the fundamentals of the company have remained stable, making the current valuation more attractive to investors. The reduction in the price target to $120 reflects adjustments in the market and fast casual dining sector, yet it still suggests considerable growth potential from the present stock price.
Charles anticipates that CAVA will expand to around 1,200 U.S. locations by 2033, which would represent a significant portion of the total addressable market. Drawing parallels with Chipotle, which has achieved a similar market penetration and trades at a robust multiple, Charles believes CAVA can reach a comparable valuation. By applying a discount rate to future earnings, he arrives at a price target of $120, which indicates a strong growth trajectory and justifies the Buy recommendation.
According to TipRanks, Charles is a 5-star analyst with an average return of 8.6% and a 53.68% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as Yum! Brands, Wendy’s, and Domino’s Pizza.
In another report released on April 7, Robert W. Baird also maintained a Buy rating on the stock with a $105.00 price target.