TD Cowen analyst Andrew Charles maintained a Buy rating on Sweetgreen (SG – Research Report) yesterday and set a price target of $33.00.
Andrew Charles has given his Buy rating due to a combination of factors that suggest Sweetgreen’s potential for recovery and growth. Despite a recent decline in restaurant industry traffic and a decrease in Sweetgreen’s stock price, management has set realistic same-store sales guidance that appears achievable. This conservative approach, along with new strategic drivers, positions the company for potential outperformance.
Furthermore, while Sweetgreen’s recent quarterly results showed an adjusted EBITDA miss, the productivity of new stores remains strong, matching that of mature stores. Management’s plans to increase marketing spend and address operational headwinds are expected to drive sequential growth in comparable sales. These factors, combined with the company’s resilience in emerging markets, support the Buy rating despite the challenges faced in the first quarter.
Charles covers the Consumer Cyclical sector, focusing on stocks such as Restaurant Brands International, Dutch Bros Inc, and McDonald’s. According to TipRanks, Charles has an average return of 11.3% and a 57.98% success rate on recommended stocks.
In another report released on February 24, RBC Capital also maintained a Buy rating on the stock with a $45.00 price target.