Key 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 (CAVA) shares jumped Thursday after the fast-casual restaurant chain’s stock got an upgrade from JPMorgan analysts, expecting growth as Cava expands 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.
The analysts said they see “significant” space for Cava to continue expanding past its current 367 locations, potentially reaching “well beyond” its goal of 1,000 locations by 2032 that the company stated at the time of its initial public offering (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.
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