Oppenheimer thinks Sweetgreen is poised for a breakout. The firm reiterated an outperform rating on the restaurant chain stock and listed it as a top pick. Oppenheimer’s $34 per share price target implies nearly 50% upside from Monday’s $22.74 close. “We believe the model is in the early innings of a powerful earnings revision cycle,” analyst Brian Bittner wrote on Monday. “Our work also suggests sales/margins in 2024E hold compelling catalysts against consensus, while the rollout of Infinite Kitchens adds a transformational lever starting in 2025 and beyond.” Sweetgreen’s automated service project, Infinite Kitchen, opened its first location in May 2023. The company plans to rollout the framework nationwide to slash labor costs. Bittner’s note comes ahead of Sweetgreen’s first-quarter report, slated for Thursday. Sweetgreen will also report first-quarter results on Thursday. Analysts polled by FactSet forecast a loss of 18 cents per share on revenue of $152 million. The analyst, however, sees Sweetgreen reporting a smaller-than-expected thanks to strong margins. “Valuation and speed bumps to mgmt.’s sales forecasts had kept us from being more actionable,” continued. However, “our work suggests now is the time to get aggressive as the model transitions to sustainable EBITDA profitability starting in 2024.” Sweetgreen has been on fire this year, gaining more than 100%. The bulk of those gains have come since March — when the company issued strong full-year guidance. SG YTD mountain Sweetgreen year to date
Related Posts
European banks in Russia face ‘awful lot of risk’, Yellen says
U.S. Secretary of the Treasury Janet Yellen speaks while presiding over a meeting of the Financial Stability Oversight Council at the Treasury Department on May 10, 2024 in Washington, DC. …
Read more
What Porsche Teen’s Grandfather Told Driver After Crash
The crash that took place late on Saturday night left two young engineers dead Pune: The grandfather of the 17-year-old, whose late-night drunken drive in a Porsche, left two 24-year-old…
Read more
FDA panel votes against Novo Nordisk’s weekly insulin in type 1 diabetes patients
A view of the logo of Novo Nordisk at the company’s office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, March 8, 2024. Tom Little | Reuters Advisers to the…
Read more
Lok Sabha Election 2024 Phase 6: Delhi, Haryana Vote Today In Penultimate Phase: 10 Points
Lok Sabha Election 2024: Election will be completed in 486 of the 543 Lok Sabha seats today. New Delhi: Voting will take place in 58 seats across seven states and…
Read more
Stock market today: Live updates
Traders work on the floor of the New York Stock Exchange during morning trading on May 24, 2024 in New York City. Michael M. Santiago | Getty Images Stocks ticked…
Read more
India Great Took Pay Cut To Work For BCCI, Now Reluctant To Apply For ‘Taxing’ Coach’s Job: Report
VVS Laxman‘s reluctance to become the Indian team’s head coach is an open secret but with the former batting stalwart’s stint as NCA’s ‘Head of Cricket’ ending in…
Read more