11:20 AM EDT, 05/16/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $26 to $148, based on a blended valuation (85x 2026 EV/EBITDA; 11x 2026 EV/Sales). We lift our 2025 EPS to $0.74 from $0.72 and keep our 2026 EPS at $1.00. CAVA ( CAVA ) executed well in Q1 compared to peers, delivering a combination of traffic-driven comp growth, EBITDA margin expansion, and net restaurant growth. The company saw average unit volumes rise 12.5% Y/Y to $2.9M, which delivered enough sales leverage to offset higher inflation in construction and food costs. We were encouraged by decelerating occupancy costs despite entering high-rent, high-traffic areas. CAVA ( CAVA ) does not plan to raise its prices further in 2025, but we have confidence there is enough momentum in comp growth to offset this possibility. We reiterate our Strong Buy, justifying our premium valuation based on CAVA's ( CAVA ) growth and margin potential and our view that the company can gain share in new markets like South Florida and the Midwest.