BUZZ-Cava drops after Argus research downgrades to 'hold' on valuation concerns
Reuters02-27
BUZZ-Cava drops after Argus research downgrades to 'hold' on valuation concerns
** Shares of restaurant chain Cava CAVA.N down ~8% at $78.20
** Argus Research downgrades rating to "hold" from "buy"
** Brokerage says CAVA’s valuation outlook is extremely high compared to industry peers
** Believes the company's shares are "priced for perfection" given recent trends in same-store sales, traffic, and restaurant-level profit margins - brokerage
** "We are concerned that the company is overstretching on its forecasts based on a slowing of certain metrics" - brokerage
** 15 of 26 brokerages rate the stock "buy" or higher, 11 "hold"; their median PT is $83 - data compiled by LSEG
** Stock fell 47% in 2025
(Reporting by Koyena Das from Bengaluru)
((Koyena.das@thomsonreuters.com))
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