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KeyBanc Starts CAVA Coverage With Overweight Rating

CAVA Group, Inc. (NYSE:CAVA) is one of the 11 Best Food Stocks to Buy According to Wall Street Analysts. On July 2, KeyBanc initiated coverage on CAVA Group, Inc. (NYSE:CAVA) and gave it an “Overweight” rating with a price target of $100.

The research firm believes CAVA Group, Inc. (NYSE:CAVA) is the top brand in the fast-growing Mediterranean fast-casual restaurant segment. KeyBanc noted that there are not many direct competitors in this segment.

A close-up image of a colorful salad platter with toppings and dressings.

The firm’s analysts compared CAVA Group, Inc.’s (NYSE:CAVA) potential growth to what Chipotle has achieved over the past two decades. This suggests that the company could become the main name in Mediterranean food and expand into new markets across the US.

KeyBanc analysts pointed out CAVA Group, Inc.’s (NYSE:CAVA) new stores are performing well, bringing in returns that rank among the best in the industry. This strong performance is expected to help the company sustain double-digit unit growth. Same-store sales are also expected to perform well, even if there is moderation in the near term.

While acknowledging CAVA stock trades at approximately 115 times and 45 times KeyBanc’s 2026 estimated EPS and EBITDA, respectively, the firm believes the company’s pricing power, expansion opportunities, and potential operational efficiencies can drive sustainable earnings growth.

KeyBanc noted that CAVA Group, Inc. (NYSE:CAVA) is trading at about 115 times its estimated earnings per share and 45 times its estimated EBITDA for 2026. However, the firm believes that the company’s pricing power, opportunities for growth, and operational efficiencies can support earnings growth.

CAVA Group, Inc. (NYSE:CAVA) is a food and restaurant company that operates a chain of Mediterranean fast-casual restaurants.

While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAVA and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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