Cava Group price target raised by $20 at Wedbush, here’s why

Wedbush raised the firm’s price target on Cava Group to $120 from $100 and keeps an Outperform rating on the shares. The company’s Q2 came in above expectations and its raised 2024 same-store-sales growth guidance remains conservative, the analyst tells investors in a research note. The firm believes Cava is positioned to sustain positive transaction growth and to gain transaction share over the longer term, even relative to its growth peers, making the stock’s premium valuation justifiable. With improved near- and medium-term visibility, Wedbush also views current 2024 and 2025 same-store-sales growth and EBITDA expectations as conservative.