Truist starts coverage on Cava with 'buy' rating

CAVA

04/12/2025 16:28

** Truist Securities initiates coverage on restaurant chain Cava group CAVA.N with "buy" rating and a price target of $66

     ** Shares of CAVA rise nearly 1% to about $55

     ** New PT an upside of 21.1% from stock's last close

     ** Brokerage sees CAVA's same-store sales rebounding to 4.5% by Q4 2026 and 4% long term, driven by menu innovation, digital growth, loyalty programs, catering, and stronger brand awareness

     ** Truist says co's strong ROI from its new store and higher Google star ratings across store classes versus peers, signals strong growth opportunity

     ** Adds CAVA to open its 1,000th store in 2031, a year ahead of plan, and sees potential for at least 2,500 stores in the long term

     ** Fourteen of 23 brokerages rate the stock "buy" or higher and nine "hold"; their median PT is $70.5; according to data compiled by LSEG

     ** Including session's move, shares down 51.2% YTD

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)

 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))