Simply Wall St has trimmed its modeled fair value for CAVA Group from US$92.88 to US$87.70, reflecting more cautious pricing assumptions. The revision follows mixed analyst target changes, with firms including BofA, Guggenheim, TD Cowen, Citi, RBC Capital, Wolfe Research and UBS maintaining positive ratings while several cut price targets on food safety headlines and cost of goods pressures. Modeled revenue growth was lowered from 21.44% to 20.39%, the future P/E multiple adjusted from 100.0x to 92.0x, and the discount rate increased from 8.41% to 8.60%, while net profit margin remained effectively unchanged at 6.06%. Analysts cited strong Q2 results and long-term expansion plans against risks tied to Cyclospora-related traffic disruption and consumer reactions to lettuce.
CAVA Group, Inc.Fair value cut and price target reductions on food safety and cost pressures.
