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Takeaways
- Bank of America analysts issued a "buy" rating for Cava while kicking off coverage of the fast-casual chain on Monday.
- Analysts gave Cava a price target of $112, which is approximately 30% higher than where Cava’s shares closed on Monday.
- The bank stated that Cava is in a good position to expand their customer base, and possibly grow beyond their previously announced 1,000 stores.
Bank of America analysts began coverage of Cava Group (CAVA), the fast-casual chain, on Monday by giving it a “buy rating”.
The analysts gave Cava a $112 price target—almost 30% above where its shares closed Monday. Visible Alpha, a group of analysts, has compiled a list of analysts who are even more bullish. The average target is $124.
Cava shares are off to a rough start this year. They have lost more than a fifth of their value so far in 2025 amid broader consumer concerns. Bank of America stated that the recent decline in Cava shares could provide investors with a “compelling purchasing opportunity”. The bank suggested that Cava could be poised to grow as it attracts new diners while also deepening its appeal with current customers and expanding its footprint.
Analysts said that new customers could be attracted by advertising and relatively recent menu items such as steak and garlic pita chip, which are among the most popular. A revamped program of loyalty could also encourage existing customers to visit more often, they added.
According to its latest annual report, Cava has 370 stores and plans to expand to 1,000. Bank of America described it as a conservative expansion plan, and estimated the brand would support 2,200 stores.
“We believe CAVA's growth runway extends well beyond its 1,000 domestic restaurant target,” Bank of America wrote, adding that Cava appears capable of increasing same-store sales, as well as shareholder returns.
The comments come after JPMorgan analysts recently upgraded the stock and S&P Global announced the company’s addition to the S&P MidCap 400.
Cava shares closed Monday at $86.41. Despite a weak start to 2025, they've gained about one-quarter of their value over the past 12 months.
