Truist Securities raised its price target on Cava Group Inc. to $80 from $78 and maintained a Buy rating, while the shares trade at $68.53 and the company carries a market capitalization of $8.13 billion. Despite the analyst move, an InvestingPro valuation assessment places Cava above its Fair Value and lists the company among the Most Overvalued names.
The brokerage expects Cava to outperform fourth-quarter 2025 estimates when it reports results on February 24 after the market close. Truist highlighted a string of operational indicators supporting that view: revenue growth of 24% over the past twelve months and a current ratio of 2.69.
Truist’s view is reinforced by its card-spend data, which the firm says shows a sharp acceleration in sales in the first quarter of 2026 to date, even as weather provided some headwinds. The analyst attributed the sales uptick to a combination of firmer underlying restaurant demand, successful menu innovation and marketing efforts, and improvements in restaurant operations.
On expansion, Truist expects Cava to beat fourth-quarter 2025 store-opening assumptions and has raised its internal estimates for the company accordingly. The firm also anticipates that Cava will provide guidance for 2026 same-store sales growth in the low-to-mid single-digit range and said it would not be dissuaded by guidance that is conservative in the low single digits.
Several other brokerages have made parallel adjustments to their views. UBS raised its price target to $69 while retaining a Neutral rating and expects fourth-quarter same-store sales and earnings to come in above consensus. Stifel reiterated a Buy rating with a $75 target, and TD Cowen increased its target to $72 and kept a Buy rating, with both firms pointing to unit growth and menu innovation as drivers for results that should meet or exceed expectations.
In an operational leadership move, Cava appointed Doug Thompson as its new chief operations officer, with the role effective March 2. Thompson joins from Texas Roadhouse and is described as having played a role in 40 consecutive quarters of positive comparable sales at his prior employer. He will oversee restaurant operations and field teams at Cava.
Taken together, the analyst upgrades, the company’s recent sales trends and the new appointment suggest investors and management are preparing for a positive fourth-quarter 2025 report, though valuation assessments vary.
Key points
- Truist raised its price target on Cava to $80 from $78 and kept a Buy rating.
- Truist expects Cava to beat fourth-quarter 2025 estimates and cites 24% revenue growth over the last 12 months and a current ratio of 2.69.
- Other firms - UBS, Stifel and TD Cowen - also raised targets or reiterated Buy/Neutral ratings and expect Cava’s fourth-quarter sales and earnings to at least meet consensus.
Risks and uncertainties
- Valuation concerns - InvestingPro analysis lists Cava as overvalued relative to its Fair Value, which poses potential downside risk for investor returns.
- Guidance uncertainty - Cava may provide conservative low single-digit same-store sales guidance for 2026, which Truist said it would not view as a deterrent but could be perceived negatively by the market.
- Operational execution - while sales acceleration is noted, continued momentum depends on sustained success in menu innovation, marketing and operations.