KeyBanc Starts CAVA Group Inc (CAVA) at Overweight

KeyBanc analyst Christopher Carril initiates coverage on CAVA Group Inc (NYSE: CAVA) with a Overweight rating and a price target of $100.00.

The analyst comments: "With few direct competitors, CAVA is the leading brand in the fast growing Mediterranean fast casual segment. Like Chipotle did over the last two decades, we believe CAVA has the potential to define the category and bring Mediterranean to new markets across the country. We believe new store returns are among the industry’s best, which can help the brand sustain double-digit unit growth. And while SSS trends are likely to moderate in the near term, we believe demand will continue to exceed supply, which should drive SSS outperformance for the foreseeable future, and limit the impact of cannibalization from new store openings. CAVA stock currently trades at ~115x/~45x our 2026E EPS/EBITDA estimates, placing it among the sector’s most expensive names. But we believe the Company’s latent pricing power, whitespace opportunities, and potential P&L efficiencies can drive sustainable earnings growth and/or positive EPS revisions over time. Our $100 PT is ~56x our 2026E EBITDA."

For an analyst ratings summary and ratings history on CAVA Group Inc click here. For more ratings news on CAVA Group Inc click here.

Shares of CAVA Group Inc closed at $82.32 yesterday.

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