CAVA Group: An Hypothetical Becoming-Chipotle Scenario Reveals Overvaluation (Rating Downgrade) [Seeking Alpha]
CAVA Group, Inc. (CAVA)
Company Research
Source: Seeking Alpha
9min Summary Cava's valuation is extremely high and difficult to justify with traditional metrics, despite its strong business performance and growth potential. The company's exceptional Q2 results and upgraded guidance highlight its operational strength but don't explain the 3x stock price increase. Historical examples show that extreme multiple expansions can lead to significant downside risks if expectations are missed. Despite Cava's bright future, its current valuation demands a 'Sell' rating, emphasizing the importance of sticking to fundamental valuation principles. LauriPatterson/E+ via Getty Images CAVA Group ( NYSE: CAVA ) is one of those public market enigmas, with a market cap that is essentially impossible to justify with traditional valuation metrics. Let's try to put Cava's valuation in context using a hypothetical takeover scenario, which in my view will reveal just how hard it is to explain where it's at. Introduction I started covering Cava on Se
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CAVA
News
- CAVA Group, Inc. (NYSE: CAVA) is now covered by analysts at UBS Group AG. They set a "neutral" rating and a $135.00 price target on the stock.MarketBeat
- Is CAVA Group Inc. (CAVA) the Best Performing Stock in 2024? [Yahoo! Finance]Yahoo! Finance
- WEN Stock Down 15% in a Year: Still Worth it? Buy, Sell or Hold? [Yahoo! Finance]Yahoo! Finance
- CAVA Group, Inc. (NYSE: CAVA) had its price target raised by analysts at TD Securities from $115.00 to $130.00. They now have a "buy" rating on the stock.MarketBeat
- CAVA Group, Inc. (NYSE: CAVA) had its price target raised by analysts at TD Cowen from $115.00 to $130.00. They now have a "buy" rating on the stock.MarketBeat
CAVA
Earnings
- 8/22/24 - Beat
CAVA
Sec Filings
- 9/18/24 - Form 4
- 9/16/24 - Form 144
- 9/11/24 - Form 4
- CAVA's page on the SEC website