CAVA Stock Price Prediction- Bears Target $22 After Breakdown
CAVA (NYSE: CAVA) stock price continues to slide after breaking below the $36.5 key support level. The shares of the restaurant chain have plunged by 24% after making a lower high on 30th August. Cava shares were changing hands at $34.36 till press time, down 3% on Monday.
Despite the negative price action in Cava’s stock price, the US equities showed slight gains on Monday. Investors use indices like the NASDAQ 100 and S&P 500 to judge the market sentiment in the US stock market. The NASDAQ 100 index increased by 2 points, while the S&P500 and Dow Jones were up 0.07% and 0.02% on Monday, respectively.
Cava To Grow Further After IPO
On June 15th, the Mediterranean fast-casual restaurant chain Cava went public. Despite the recent downtrend, Cava stock price is now trading way above the $22 initial offering price. The company also posted outstanding second-quarter results that also beat analysts’ expectations. Analysts expect Cava to generate around $2.5 billion in revenue with over 1000 restaurants all over the US by 2032.
In other news, Cava also received an upgrade from Citigroup. The American investment bank raised its price target from $42 to $48. Citigroup also mentioned Cava’s target price range to be $45-$58, with an average rating for outperformance. The stock is currently trading 40% below its all-time high.
Cava Stock Price Breaks Below Major Support Level
The chart for NYSE: CAVA shows the price trading 6.4% below the $36.6 support level. I expect the price to see some increased volatility this week due to the Fed meeting on Wednesday. The stock is sitting at its lowest level since being listed on the New York Stock Exchange.
The Cava stock price forecast has flipped bearish after a breakdown below the $36.6 support level. A 29% correction towards $24.6, which is the 1.618 fib level, could be on the cards. Another potential bearish target can be the initial public offering (IPO) price of $22.
In the meantime, I’ll keep sharing the updated CAVA forecast and my personal trades on my Twitter, where you are welcome to follow me.