Analyst Sees Sweetgreen's New Tech As Major Margin Booster: Upgrades To Overweight, Raises Price Target
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Brian Mullan upgraded Sweetgreen, Inc. (NYSE:SG) from Neutral to Overweight, raising the price target to $19 from $13. The upgrade is based on the potential of the company's new automated ordering technology, which is expected to significantly boost margins. The technology is expected to contribute to a 300 to 350 bps lift to SG's consolidated margins by the end of the decade.
July 31, 2023 | 5:50 pm
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Sweetgreen's stock has been upgraded by Piper Sandler due to the potential of its new automated ordering technology. This is expected to significantly boost the company's margins and has led to a raised price target.
The upgrade by Piper Sandler is a positive signal for investors, indicating increased confidence in Sweetgreen's future performance. The new technology is expected to boost margins, which could lead to increased profitability and a higher stock price. The raised price target also suggests that the stock is undervalued at its current price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100