Cava Group price target raised to $122 from $80 at Loop Capital

Loop Capital raised the firm’s price target on Cava Group to $122 from $80 but keeps a Hold rating on the shares. The company reported “sharp” Q2 EBITDA growth and “solid” beat on comparable sales, which rose 14.4%, including 4.9% higher ticket and 9.5% traffic growth, the analyst tells investors in a research note. Cava deserves to trade at a substantial premium to its peer group average given the company is in the early stages of its unit growth story, has an impressive same-store sales growth profile, and possesses a unique Mediterranean-style fast-casual concept, though these positive attributes are already reflected in the company’s current valuation, the firm added.