TD Cowen Maintains Buy on CAVA (CAVA) Despite Near-Term Growth Pressure

CAVA Group Inc. (NYSE:CAVA) is one of the best high-beta stocks to buy now. On September 3, TD Cowen analyst Andrew Charles maintained a Buy rating on the stock with an unchanged price target of $90.

CAVA Group Inc.’s (NYSE:CAVA) share price has been under pressure since the start of February. Its stock tanked by nearly 17% on August 13 after announcing its Q2 2025 results, and as a result, the stock is down 42% year-to-date.

Despite the fall, Charles maintains a positive view on CAVA Group Inc. (NYSE:CAVA). He noted that expectations for same-store sales growth in 2025 and 2026 are running slightly below consensus. However, the alignment of 2026 adjusted EBITDA with consensus estimates reinforces the conviction in the company’s ability to sustain profitability. This balance between moderated sales expectations and a solid margin outlook underpins the analyst’s optimistic view.

Investor sentiment also plays a role in the positive stance. A recent poll conducted during TD Cowen’s bull/bear webinar indicated optimism among investors toward CAVA Group Inc.’s (NYSE:CAVA) performance outlook.

With these factors, the analysis suggests that while near-term sales growth expectations may be more tempered, the visibility of profitability and supportive investor sentiment provide a favorable backdrop for the stock.

CAVA Group Inc. (NYSE:CAVA) operates a fast-casual Mediterranean restaurant chain across the United States. As of July 13, 2025, the company operated 398 restaurants in 27 states and Washington, D.C.

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Disclosure: None. This article is originally published at Insider Monkey.