Why is Sweetgreen stock down 10% this week?
According to the compiled information S&P Global Market Intelligence, Sweet green (NYSE: SG ) The stock has lost more than 10% of its value in trading this week. The operator of the salad and healthy food restaurant chain suffered from an analyst’s news Price target cut down.
The decisive influencer was Brian Harbor of White Shoes Investment Bank. Morgan Stanley. On Tuesday, Harbor cut Sweetgreen’s fair value estimate to $28 per share from a previous estimate of $32. In doing so, he maintained an Equal Weight (read: Hold) recommendation on the stock.
According to reports, the analyst’s move was not due to any news coming from Sweetgreen. Instead, he has become less optimistic about the prospects for the US restaurant industry as a whole, as he expects the sector’s recovery to be slower—estimated to grow less than 5 percent through 2024 compared to last year. 4% increase.
Caution seems to be in the air with restaurateur stock these days. In 2024, the exchange had a serious problem, tripling its price in a year. Investors were especially excited. Sweetgreen’s endless kitchen model, centered around the automation of salad processing.
Sweetgreen is putting a lot of promise and significant company resources into Infinite Kitchen. In the year As of 2024, the number of kitchens equipped with robot salad chefs has increased dramatically — and quickly, jumping from just two at the end of the second quarter to five at the conclusion of the following frame.
This is an interesting development that deserves attention, because it promises to save the company’s capital on labor costs. I would not be too hesitant or pessimistic at its chances; To me, the stock looks like a very interesting speculative buy for investors with an above-average tolerance for risk.
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