CAVA Group Initiated at Buy by Guggenheim on Strong Growth Outlook

Guggenheim initiated coverage of CAVA Group Inc. (NYSE: CAVA) with a Buy rating and a $100 price target, citing strong underlying business fundamentals and growth prospects. The firm acknowledged that the stock trades at approximately 40x estimated 2027 EV/EBITDA, a multiple influenced by stock-based compensation, but said the company’s fundamentals justify the premium valuation. Guggenheim highlighted key strengths including cash-on-cash returns exceeding 40%, average unit volumes of approximately $2.9 mil ...