TD Cowen Cuts Sweetgreen (NYSE:SG) Price Target to $5.00

Key Points

• TD Cowen lowered Sweetgreen’s price target from $8 to $5 and maintained a “hold” rating, implying about 15.4% downside from the stock’s $5.91 price.
• Analyst sentiment remains cautious, with a consensus “hold” rating and average price target of $7.54 based on four buys, eleven holds, and three sells.
• Sweetgreen’s latest quarterly results fell short of expectations, reporting an adjusted loss of $0.22 per share versus the projected $0.13 loss and revenue of $192.66 million versus $194.50 million expected.

Sweetgreen (NYSE:SG - Get Free Report) had its target price reduced by equities research analysts at TD Cowen from $8.00 to $5.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's price objective suggests a potential downside of 15.41% from the stock's current price.

A number of other brokerages have also recently commented on SG. BNP Paribas Exane lifted their target price on shares of Sweetgreen from $4.50 to $5.00 and gave the company an "underperform" rating in a report on Friday, May 8th. Weiss Ratings raised shares of Sweetgreen from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, May 22nd. UBS Group upped their price objective on Sweetgreen from $6.50 to $7.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. DA Davidson upped their price target on Sweetgreen from $5.50 to $7.00 and gave the stock a "neutral" rating in a research note on Monday, May 11th. Finally, Citigroup boosted their price objective on shares of Sweetgreen from $9.00 to $10.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $7.54.

Sweetgreen Stock Down 3.1%

NYSE:SG opened at $5.91 on Friday. The company has a market capitalization of $702.40 million, a PE ratio of 49.26 and a beta of 2.19. Sweetgreen has a 52-week low of $4.49 and a 52-week high of $12.80. The stock's 50 day moving average price is $7.75 and its 200 day moving average price is $6.86.

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

Hedge Funds Weigh In On Sweetgreen

Institutional investors and hedge funds have recently modified their holdings of the company. Larson Financial Group LLC grew its stake in Sweetgreen by 165.8% in the 3rd quarter. Larson Financial Group LLC now owns 3,766 shares of the company's stock worth $30,000 after acquiring an additional 2,349 shares during the period. Fifth Third Bancorp purchased a new position in shares of Sweetgreen during the 1st quarter worth $38,000. CWM LLC boosted its holdings in shares of Sweetgreen by 212.2% during the fourth quarter. CWM LLC now owns 7,333 shares of the company's stock worth $50,000 after purchasing an additional 4,984 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Sweetgreen by 281.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 7,912 shares of the company's stock worth $53,000 after purchasing an additional 5,839 shares during the last quarter. Finally, Versant Capital Management Inc grew its position in shares of Sweetgreen by 241.5% in the second quarter. Versant Capital Management Inc now owns 10,518 shares of the company's stock valued at $93,000 after purchasing an additional 7,438 shares during the period. Hedge funds and other institutional investors own 95.75% of the company's stock.

Sweetgreen Company Profile

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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