.August 23, 2024 12:49:00 PM

Citi analysts raised their price target for CAVA Group Inc (NYSE:CAVA) to $115 from $93 after the company announced better-than-expected Q2 earnings, leading to a stock price surge of over 21% intra-day. The company is benefiting from its unique category, strong brand awareness, effective marketing, and solid execution. CAVA reported strong same-store sales growth and positive free cash flow for the second consecutive quarter. Despite strong fundamentals, analysts are cautious due to the company’s high valuation, leaving little room for error in a potentially challenging market. Citi maintains a Neutral rating for now.