BofA Lowers Sweetgreen Price Target to $22 from $27, Maintains Buy Rating

BofA analyst Sara Senatore has lowered the price target for Sweetgreen (SG) to $22 from $27 and maintains a Buy rating. The firm is fine-tuning estimates for 20-plus companies across its restaurant coverage and adjusting selected price targets ahead of earnings. The analyst's decision reflects changes in estimates and market multiples.

Bank of America analyst Sara Senatore has recently lowered the price target for Sweetgreen (SG) to $22 from $27 while maintaining a Buy rating [1]. This adjustment reflects the firm's ongoing review of estimates and market multiples for its restaurant coverage, impacting approximately 20 companies ahead of earnings reports.

The revised price target comes as part of Bank of America's broader strategy to fine-tune estimates and expectations. The analyst's decision is influenced by recent changes in market conditions and financial projections, which have led to a reassessment of Sweetgreen's valuation.

Sweetgreen has been under scrutiny due to its ongoing unprofitability and increased leverage, which have raised concerns among analysts and investors. However, the company has shown signs of optimism with strategic growth initiatives and operational efficiency enhancements.

The stock has been the subject of varied analyst ratings, with 12 analysts providing a Moderate Buy rating, 6 analysts rating it as a Buy, and 6 analysts holding a Hold position [1]. The consensus price target is $20.45, with a high forecast of $30.00 and a low forecast of $15.00, indicating a 50.48% upside from the current price of $13.59.

Despite the challenges faced by Sweetgreen, the company's strategic initiatives and operational improvements are expected to drive future growth. The mix of strategic growth initiatives and operational challenges has led to a moderate overall stock score, reflecting the mixed outlook from analysts.

References:
[1] https://www.tipranks.com/stocks/sg/forecast