Expert Outlook: Cava Group Through The Eyes Of 15 Analysts


Across the recent three months, 15 analysts have shared their insights on Cava Group CAVA, expressing a variety of opinions spanning from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 8 3 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 4 2 1 0 0
3M Ago 0 6 1 0 0

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $65.53, a high estimate of $81.00, and a low estimate of $50.00. This current average reflects an increase of 20.68% from the previous average price target of $54.30.

Decoding Analyst Ratings: A Detailed Look

The standing of Cava Group among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jon Tower Citigroup Raises Neutral $81.00 $60.00
Nick Setyan Wedbush Raises Outperform $74.00 $65.00
Jeffrey Bernstein Barclays Announces Equal-Weight $58.00 -
Brian Harbour Morgan Stanley Raises Overweight $68.00 $62.00
Andrew Charles TD Cowen Maintains Buy $73.00 -
Andrew Charles TD Cowen Raises Buy $73.00 $63.00
Andrew Charles TD Cowen Maintains Buy $63.00 -
Christine Dooley Argus Research Announces Buy $70.00 -
John Ivankoe JP Morgan Raises Overweight $64.00 $50.00
John Ivankoe JP Morgan Raises Overweight $50.00 $40.00
Jon Tower Citigroup Raises Neutral $60.00 $49.00
Brian Harbour Morgan Stanley Raises Overweight $62.00 $49.00
Brian Mullan Piper Sandler Raises Overweight $63.00 $46.00
Nick Setyan Wedbush Raises Outperform $65.00 $59.00
Nick Setyan Wedbush Announces Outperform $59.00 -

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cava Group. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cava Group compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Cava Group's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Cava Group's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Cava Group analyst ratings.

Get to Know Cava Group Better

Cava Group Inc owns and operates a chain of restaurants. It is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. The company's dips, spreads, and dressings are centrally produced and sold in grocery stores. The company's operations are conducted as two reportable segments: CAVA and Zoes Kitchen. The company generates the majority of its revenue from the CAVA segment.

Cava Group: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Cava Group's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 36.35%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Cava Group's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.16%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cava Group's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.36%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Cava Group's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.21%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Cava Group's debt-to-equity ratio is below the industry average. With a ratio of 0.59, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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