Mediterranean fast casual restaurant stock CAVA is higher after an upgrade
CAVA Group Inc (NYSE:CAVA), a recent addition to Wall Street, was last seen 4.1% higher to trade at $42.77 after a bull note. Wedbush upgraded the Mediterranean restaurant chain to “outperform” from “neutral,” predicting another quarter of upside, as well as the company’s position to beat headwinds blowing in from lower grocery inflation.
Last week, TD Cowen initiated coverage on CAVA with an “outperform” rating and a $46 price target. And while the majority of analysts are bullish on the restaurant stock, four of 12 analysts maintain a tepid “hold” rating, leaving some room for more upgrades.
Short interest tacked on more than 29% over the last month, and the 13.32 million shares sold short represents 12.% of Cava stock’s total available float — nearly nine days’ worth of pent-up buying power.
After its June 15 debut, CAVA jumped to an all-time high of $58.10 by Aug. 12. This peak was followed by a sharp fall to $29.05 on Oct. 4. Now, after winning five of the last six weeks, a V-shaped rally is in effect, with the shares now 39.6% higher this quarter alone.