Is SG Stock a Buy After 20% Boom? Here’s What Wall Street Thinks About Sweetgreen.

Salad-slinger Sweetgreen (NYSE:SG) is enjoying a strong jump this morning after beating Q4 sales estimates. Indeed, SG stock is up 20% so far today after seeing gains post-market Thursday. After a generally tumultuous few months for the stock following its initial public offering (IPO), investors clearly have renewed interest in the company.

The front of a Sweetgreen (SG) store in Arlington, Virginia.
Source: melissamn / Shutterstock.com

So, what’s going on with Sweetgreen lately?

Well, on Thursday afternoon the green machine posted stronger-than-expected financial results for Q4. Sweetgreen beat both quarterly and yearly revenue estimates, despite posting a wider earnings per share (EPS) loss than expected. Sweetgreen reported Q4 sales of $96.4 million, beating estimates of $84.7 million. For the 2021 fiscal year, SG announced $339.9 million in sales, compared to estimates of $328.1 million.

Investors were also clearly pleased with the company’s future outlook. For 2022, Sweetgreen plans on opening at least 35 new restaurants, with predicted revenue between $515 million and $535 million.

If you recall, SG has generally trended downward since its high-profile IPO last November. From its opening price of $50 per share, today Sweetgreen is trading closer to $25.

Let’s see what Wall Street thinks about SG’s potential following its promising earnings call.

3 Analysts Weigh In on SG Stock

Despite the stock jump, RBC Capital analyst Christopher Carril lowered his price target for Sweetgreen. Carril reduced the price target to $35 from $40, albeit while maintaining his “outperform” rating.

Oppenheimer analyst Brian Bittner had a similar story today. Bittner lowered the price target on SG from $41 per share to $37. Bittner also maintained his “outperform” rating.

Finally, the six-analyst panel at TipRanks believes SG is a “strong buy.” They set an average 12-month price target of $37, representing roughly 45% upside.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/is-sg-stock-a-buy-after-20-boom-heres-what-wall-street-thinks-about-sweetgreen/.

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