Bond.az - Morgan Stanley raised its price target on CAVA Group Inc (NYSE:CAVA) to $86 from $85, maintaining an Equalweight rating.
First-quarter same-store sales rose 9.7%, beating estimates. Second-quarter trends remain strong. Revenue exceeded expectations by 4%, EBITDA by 8%.
Restaurant-level margins were 25.1%. Cost leverage was limited. New store performance, 6.8% traffic growth, salmon rollout, and unit growth are positive factors.
Morgan Stanley cited valuation concerns for the Equalweight rating. CAVA trades at a P/E of 147 and EV/EBITDA of 68.5. Shares are up 79% in six months.
