Here's Why Sweetgreen Stock Sank Today
Shares of salad-centric restaurant chain Sweetgreen (NYSE: SG) sank on Thursday, after an analyst cut his target price for the stock in half. As of 1:45 p.m. ET, Sweetgreen stock was down almost 12%.
Citi analyst Jon Tower lowered his price target for Sweetgreen stock today from $32 per share to $16 per share, according to The Fly. As far as price-target reductions go, that's pretty steep.
The price-target reduction is also a quick reversal. Tower initiated coverage on Sweetgreen stock in April when it was trading at around $28 per share, at which point it was given its original price target of $32 per share. However, keep in mind that Tower didn't recommended buying the stock in April or today. Rather, Tower's rating was and still is neutral, noting that the company is promising but its financials don't yet measure up to winning restaurant stocks of the past.
Source Fool.com
