Cava rises after Bernstein upgrade

CAVA

23/04/2025 17:38

** Fast-casual restaurant Cava's CAVA.N shares rise 6.6% to $86.79

** Bernstein upgrades CAVA's rating to "outperform" from "market-perform"; maintains PT of $115

** Brokerage says it is upgrading CAVA as it believes the market is overly discounting near-term risks while undervaluing the long-term growth story

** CAVA's relatively higher-income consumer base and disciplined pricing actions will likely protect it during the current economic downturn, brokerage says

** Bernstein expects Cava to absorb any tariff impact, increasing its continued value perception

** 11 of 18 brokerages rate the stock "buy" or higher, seven "hold"; their median PT is $115, according to data compiled by LSEG

** CAVA has lost 28% YTD, up to last close

(Reporting by Juby Babu in Mexico City)

((Juby.Babu@thomsonreuters.com))