Critical Insights From Cava Group Analyst Ratings: What You Need To Know

During the last three months, 8 analysts shared their evaluations of Cava Group CAVA, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $60.62, with a high estimate of $65.00 and a low estimate of $50.00. Observing a 22.29% increase, the current average has risen from the previous average price target of $49.57.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Cava Group. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Cava Group's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Cava Group analyst ratings.

About Cava Group

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 exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Cava Group displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 36.35%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Cava Group's net margin lags behind industry averages, suggesting 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 lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.36%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Cava Group's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.21%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Cava Group's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.59.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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