Melius upgrades CAVA Group to Buy with $95 price target
Melius Research raised its rating on CAVA Group Inc. from Hold to Buy on Oct. 8, 2026 and lifted its two‑year price target to $95, up from $90. The upgrade follows a strong second‑quarter performance that showed 27% revenue growth and same‑store sales up 9.0%. Melius said the stock’s recent decline, partly due to a Cyclospora outbreak, was an overreaction and that the company’s unit economics and expansion pace support the higher target.
Why it matters
Melius’s upgrade signals to investors that the analyst expects the stock to rebound, potentially driving buying interest and price appreciation toward the $95 target. The higher target also implies a valuation multiple of about 63 times 2029 earnings per share, according to the research note.
Key facts
- 1Melius upgraded CAVA Group to Buy from Hold on Oct. 8, 2026. investing.com
- 2The price target was raised to $95 from $90. investing.com
- 3CAVA’s stock was trading at $52.07, down 47% from its 52‑week high of $98.79. investing.com
- 4CAVA reported 27% revenue growth over the last twelve months. investing.com
- 5Second‑quarter same‑restaurant sales grew 9.0% and traffic rose 5.3%. finance.yahoo.com
- 6Revenue for the quarter was $365.4 million. finance.yahoo.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.