Bank of America Launches Cava Coverage With Bullish Take
Key Takeaways
- Bank of America analysts issued a “buy” rating for Cava while kicking off coverage of the fast-casual chain on Monday.
- The analysts gave Cava a $112 price target, which is about 30% above where Cava shares closed Monday.
- The bank said Cava is positioned to expand its customer base and potentially grow its footprint beyond its previously announced target of 1,000 stores.
Bank of America analysts kicked off coverage for Cava Group (CAVA) on Monday with a “buy” rating for the fast-casual chain’s stock.
The analysts gave Cava a $112 price target—almost 30% above where its shares closed Monday. Other analysts are even more bullish, with the average target compiled by Visible Alpha at $124.
Cava shares have had a tough start to the year, losing more than one-fifth of their value in 2025 so far amid broader concerns about consumer health. However, their recent slide could offer investors a “compelling buying opportunity” said Bank of America, suggesting Cava could be poised for growth as the chain attracts new diners, deepens its appeal with existing customers, and expands its footprint.
New customers may be drawn in by advertising and relatively new menu items, including steak and garlic pita chips, the analysts said. A revamped loyalty program could also promote more frequent visits from existing customers, they added.
Cava has nearly 370 locations and has announced plans to grow to 1,000 stores, according to its most recent annual report. Bank of America described this as a “conservative” expansion plan and estimated the brand could support 2,200 locations.
“We believe CAVA’s growth runway extends well beyond its 1,000 domestic restaurant target,” Bank of America wrote, adding that Cava appears capable of increasing same-store sales, as well as shareholder returns.
The comments come after JPMorgan analysts recently upgraded the stock and S&P Global announced the company’s addition to the S&P MidCap 400.
Cava shares edged 0.7% higher to close at $86.41 Monday. Despite a weak start to 2025, they’ve gained about one-quarter of their value over the past 12 months.