Cava Group upgraded to Buy at Argus on valuation

Argus analyst Christine Dooley upgraded Cava Group (CAVA) to Buy from Hold with a $70 price target. The stock is down 17% in the past two weeks from its 52-week highs, presenting an opportunity for the company to add it to its Buy list, the analyst tells investors in a research note. The firm is positive on Cava’s “long runway to growth” as it appears poised to take advantage of opportunities in its targeted Mediterranean niche as well as in the fast-casual segment of the restaurant industry, Argus states. The analyst further notes that the price to expected 2025 sales ratio of 5.7-times on the stock is below that of industry leader Chipotle (CMG).