Why Sweetgreen Stock Dived by 10% This Week
According to data compiled by S&P Global Market Intelligence, Sweetgreen (NYSE: SG) stock lost more than 10% of its value in trading this week. The salad and healthy food restaurant chain operator suffered from news of an analyst's price target cut.
The cutter was Brian Harbour of influential white-shoe investment bank Morgan Stanley. On Tuesday, Harbour enacted a fairly assertive cut on his Sweetgreen fair value assessment, to $28 per share from his previous $32. In doing so, he maintained his equal weight (read: hold) recommendation on the shares.
According to reports, the analyst's move wasn't necessarily due to any news coming from Sweetgreen. Rather, he's become less enthusiastic about the prospects for the U.S. restaurant industry as a whole, since he's expecting the sector's rebound to be sluggish -- in his estimation, it'll grow by less than 5% compared to 2024, compared to last year's 4% rise.
Source Fool.com
