KeyBanc starts covering Cava with 'overweight' rating

Brokerage KeyBanc initiates coverage of fast-casual restaurant chain Cava CAVA.N with an "overweight" rating and PT of $100

KeyBanc says co is the leading brand in the Mediterranean fast casual segment by a margin and has the potential to expand its primarily suburban footprint into key markets across the U.S.

Sees CAVA's unit growth as one of the industry's best, with margins in the mid-20% and estimated new unit returns of more than 50%

Co's same-store sales growth will likely moderate to the mid-single-digit range this year compared with 13.4% last year, but revenue growth will still exceed 20% as more demand than supply will cushion the impact of competition from new store openings, brokerage says

PT implies a 21.4% premium to the stock's last close

Thirteen brokerages rate the stock "buy" and higher, six "hold"; median PT is $115 - data compiled by LSEG

As of last close, stock down 27% YTD