Argus analysts raised their price target for CAVA Group Inc (NYSE:CAVA) to $128, up from $104, while maintaining a Buy rating on the stock.

The analysts' positive outlook on CAVA Group stems from the company’s strong position in the fast-casual restaurant market, particularly within the growing Mediterranean cuisine segment. The analysts noted that CAVA is well-positioned to capitalize on expansion opportunities, supported by a solid business model, a healthy balance sheet, and a seasoned leadership team. The company’s ability to innovate, including the introduction of new menu offerings like steak, is expected to boost restaurant sales, particularly as more consumers seek protein-rich options.

The analysts forecast an impressive long-term growth rate of 18% for CAVA. From a technical perspective, the stock has shown a bullish trend, with consistent higher highs and higher lows throughout the year, despite a brief dip following insider sales disclosures. Although CAVA's valuation, with a price-to-sales ratio of 13.5, exceeds the industry average of 8, the analysts believe the company’s growth momentum, combined with management’s plans to expand by opening new locations, presents a solid investment opportunity.