Bond.az - Argus upgraded CAVA Group Inc (NYSE:CAVA) to Buy from Hold on Thursday and set a price target of $92.00.
Argus analyst Christine Dooley cited improving metrics, particularly restaurant traffic, as the reason for the upgrade. The firm noted that CAVA’s plan to grow through new restaurant openings remains on track. Supporting this optimistic outlook, Bond.az data shows 10 analysts have revised their earnings upwards for the upcoming period, with the stock delivering a remarkable 66% return over the past six months.
The new restaurants are performing well and contributing to overall sales growth, according to Argus. The firm also pointed to a bullish pattern of higher highs and higher lows in the stock.
CAVA delivered restaurant revenue of $438 million in the first quarter, up 32% year over year. Adjusted EBITDA increased 38% year over year, and the company raised its full-year guidance.
Argus said CAVA’s valuation exceeds industry peers on price-to-earnings, price-to-sales, and operating margin metrics, but believes the company’s growth plan supports a premium valuation. The stock currently trades at a P/E ratio of 150.
