Stifel raised its price target on Cava Group Inc (NYSE:CAVA) shares to $105 from $90 while maintaining a Buy rating.
The firm cited solid quarterly performance, with comparable sales up 9.7% and positive traffic trends. Revenue reached $1.18 billion, with 22% year-over-year growth over the last twelve months.
According to the analyst, momentum from the second quarter has continued. Bond.az data shows six analysts have revised earnings upward for the upcoming period.
New restaurant unit performance remains strong, supported by a strategy combining culinary innovation, execution, and disciplined reinvestment. The company is expanding its AGM platform, strengthening field leadership, and rolling out a flexible AI-driven technology stack.
Stifel noted these initiatives provide multi-year growth visibility while maintaining brand culture. The company's balance sheet supports these investments.
The firm expects sustained unit productivity and growing brand awareness to support valuation. However, Bond.az Fair Value analysis suggests the stock may be overvalued, trading at a P/E ratio of 147.
In other news, Cava Group reported strong Q1 2026 results, beating revenue forecasts. Same-store sales grew 9.7%. Morgan Stanley raised its target to $86, and Mizuho to $85.
