Cava Stock Climbs After JPMorgan Suggests Taking Advantage of Recent Slide

Takeaways

• Cava Group shares jumped nearly 5% Thursday after JPMorgan analysts upgraded the chain's stock.
• The analysts said they recommend "taking advantage of the significant pullback" in Cava's share price, expecting growth as Cava expands its locations.
• Even with Thursday's gains, Cava shares have lost more than 40% of their value since closing at a record high in December.

Cava Group’s (CAVA) stock jumped on Thursday after JPMorgan analysts upgraded the stock, expecting growth due to Cava expanding its locations.

The stock surged nearly 5% Thursday to close at $84.66, though even with Thursday's gains, they've lost over 40% of their value since closing at a record high of $150.88 in December.

JPMorgan analysts said they "recommend taking advantage of the significant pullback" in Cava's stock and boosted their rating to "overweight" from "neutral" with a price target of $110, calling it a "buy now and own for the long-term" stock.

Analysts say they see “significant” room for Cava’s expansion beyond its current 367 sites, and that it could “well exceed” its goal of 1,000 sites by 2032, which the company stated during its initial public offer (IPO).

The consensus price target of analysts tracked by Visible Alpha is slightly higher than JPMorgan's target at about $126, suggesting significant upside from Thursday's level, though well below the stock's December high.