William Blair analyst Sharon Zackfia has reiterated their bullish stance on SG stock, giving a Buy rating on August 4.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Sharon Zackfia’s rating is based on several factors that highlight both challenges and potential for Sweetgreen. Despite a decline in second-quarter comparable sales, which fell short of consensus expectations, the results were slightly better than her own projections. This indicates some resilience in the company’s performance amidst difficult market conditions.
Additionally, the company faced headwinds from the launch of a new loyalty program and a tariff penalty, yet managed to partially offset these with reduced general and administrative expenses. The contraction in adjusted EBITDA margin, while significant, was not as severe as anticipated by Zackfia, suggesting potential for operational improvements. These elements combined to support her Buy rating, reflecting a belief in the company’s ability to navigate current challenges and capitalize on future opportunities.
According to TipRanks, Zackfia is a 4-star analyst with an average return of 11.0% and a 51.97% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Kura Sushi USA, Sweetgreen, and Lululemon Athletica.
In another report released on August 4, Wells Fargo also maintained a Buy rating on the stock with a $19.00 price target.