Mediterranean restaurant chain CAVA Group (NYSE:CAVA) stock was upgraded by Morgan Stanley from Equalweight to Overweight, which set a price target of $41, suggesting a potential 30% increase.

After going public in June with an initial price of $22, CAVA’s stock reached $57 in July but has since declined to $32. Morgan Stanley analysts highlighted a minor lockup expiration in September and assumed some IPO stakeholders sold.

While acknowledging the impact of rate-sensitive stocks, the analysts believe CAVA’s rough patch might be passing. Despite CAVA fitting some criteria for short investment concerns, the bank believes the company’s focus on healthy food, daytime-driven customer traffic, and positive demographics offer it a competitive edge.

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