Sweetgreen (NYSE:SG) Price Target Cut to $6.50 by Analysts at UBS Group

Key Points

• UBS lowered Sweetgreen’s price target from $7.00 to $6.50 while maintaining a “neutral” rating, implying roughly 20.6% upside from the prior close. The broader analyst consensus remains “Hold,” with an average target of $7.19.
• Sweetgreen reported a second-quarter loss of $0.22 per share, missing the $0.13 expected loss, while revenue of $192.66 million also fell short of estimates. Same-store sales declined 6.2%, and management expects full-year comparable sales to drop 7%–8% amid weaker customer traffic and food-safety concerns.
• Shares fell 8.2% to $5.39 following the results and outlook cut. Institutional investors own approximately 95.75% of the company, with several major funds increasing their positions.

Sweetgreen (NYSE:SG - Get Free Report) had its price objective lowered by research analysts at UBS Group from $7.00 to $6.50 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. UBS Group's price target points to a potential upside of 20.59% from the stock's previous close.

Several other equities analysts have also recently weighed in on the company. Wall Street Zen raised Sweetgreen from a "strong sell" rating to a "sell" rating in a report on Saturday, May 23rd. Citigroup reduced their target price on Sweetgreen from $10.00 to $8.00 and set a "buy" rating on the stock in a report on Friday. Royal Bank Of Canada decreased their price target on Sweetgreen from $7.00 to $6.50 and set an "outperform" rating on the stock in a research report on Friday. DA Davidson boosted their price target on Sweetgreen from $5.50 to $7.00 and gave the company a "neutral" rating in a research note on Monday, May 11th. Finally, Oppenheimer decreased their target price on shares of Sweetgreen from $10.00 to $8.50 and set an "outperform" rating on the stock in a report on Friday. Four equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Sweetgreen currently has a consensus rating of "Hold" and a consensus price target of $7.19.

Sweetgreen Stock Down 8.2%

Shares of SG traded down $0.48 during mid-day trading on Friday, hitting $5.39. 17,399,888 shares of the company's stock were exchanged, compared to its average volume of 5,087,054. Sweetgreen has a 52 week low of $4.49 and a 52 week high of $10.63. The stock's 50-day simple moving average is $7.75 and its 200-day simple moving average is $6.86. The firm has a market cap of $640.49 million, a price-to-earnings ratio of 44.92 and a beta of 2.19.

Sweetgreen (NYSE:SG - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.13) by ($0.09). The company had revenue of $192.66 million during the quarter, compared to the consensus estimate of $194.50 million. Sweetgreen had a net margin of 2.49% and a negative return on equity of 33.07%. The company's quarterly revenue was up 3.8% on a year-over-year basis. During the same quarter last year, the firm posted ($0.20) earnings per share. Analysts forecast that Sweetgreen will post -0.52 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sweetgreen

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Woodson Capital Management LP grew its stake in shares of Sweetgreen by 152.6% during the fourth quarter. Woodson Capital Management LP now owns 6,000,000 shares of the company's stock worth $40,560,000 after buying an additional 3,625,000 shares during the last quarter. Marshall Wace LLP lifted its stake in shares of Sweetgreen by 1,428.8% in the 3rd quarter. Marshall Wace LLP now owns 3,923,973 shares of the company's stock valued at $31,313,000 after acquiring an additional 3,667,306 shares during the last quarter. Federated Hermes Inc. boosted its holdings in shares of Sweetgreen by 366.8% during the 4th quarter. Federated Hermes Inc. now owns 2,647,899 shares of the company's stock valued at $17,900,000 after acquiring an additional 2,080,628 shares in the last quarter. Geode Capital Management LLC grew its position in Sweetgreen by 0.7% during the 4th quarter. Geode Capital Management LLC now owns 2,453,564 shares of the company's stock worth $16,589,000 after acquiring an additional 16,281 shares during the last quarter. Finally, BNP Paribas Financial Markets grew its position in Sweetgreen by 35.6% during the 4th quarter. BNP Paribas Financial Markets now owns 2,295,867 shares of the company's stock worth $15,520,000 after acquiring an additional 603,029 shares during the last quarter. Institutional investors own 95.75% of the company's stock.

Sweetgreen News Roundup

Here are the key news stories impacting Sweetgreen this week:

• Positive Sentiment: Second-quarter revenue increased 3.8% year over year to $192.66 million, indicating continued sales growth despite the challenging environment. Oppenheimer maintained an “outperform” rating, although it reduced its price target from $10 to $8.50. Oppenheimer lowers Sweetgreen price target
• Neutral Sentiment: Sweetgreen said it has not been implicated in the ongoing cyclospora outbreak, but consumer concerns about fresh produce are affecting traffic. The company removed jalapeños from its offerings amid the broader food-safety concerns. Sweetgreen cuts full-year outlook as cyclospora fears weigh on sales
• Negative Sentiment: Sweetgreen reported a second-quarter loss of $0.22 per share, wider than the $0.13 loss analysts expected and worse than the $0.20 loss a year earlier. Revenue also fell slightly short of estimates. Sweetgreen reports second-quarter loss and misses revenue estimates
• Negative Sentiment: Same-store sales declined 6.2% in the quarter, marking the chain’s sixth consecutive comparable-sales decline. Management now expects full-year same-store sales to fall 7%–8%, reflecting weaker customer demand linked to cyclospora fears. Sweetgreen shares slide as cyclosporiasis fears prompt forecast cut
• Negative Sentiment: Analysts lowered their valuations following the earnings release: Wells Fargo cut its target from $7 to $6, while TD Cowen reduced its target from $8 to $5 and assigned a “hold” rating. Analysts lower Sweetgreen price targets

About Sweetgreen

Sweetgreen, Inc is a fast-casual restaurant chain specializing in salads, grain bowls and warm bowls that emphasize fresh, locally sourced ingredients. Since its founding in 2007 by Jonathan Neman, Nicolas Jammet and Nathaniel Ru, Sweetgreen has focused on sustainable agriculture, working with regional farmers across the United States to provide seasonal produce and promote environmentally responsible sourcing practices. The company's menu features a variety of plant-forward options, including custom-build salads, chef-curated bowls and limited-time offerings that reflect changing harvests.

Sweetgreen operates a technology-driven service model that combines in-store experiences with digital ordering through its mobile app and website.

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