Organic salad restaurant operator Sweetgreen (NYSE:SG) stock is recovering off its recent IPO sell-off as investors take advantage of discounted shares. The Company operates over 140 restaurants with over 5,000 workers underscoring the plant-friendly, locally sourced, organic, and earth-friendly theme popular amongst millennials and gen-Z-ers.
Prudent investors seeking an ESG investment-themed restaurant play with its clean lifestyle brand underscoring its sustainable purpose-based, natural, and plant-based food offerings can look for opportunistic pullbacks for exposure.
About Sweetgreen
Sweetgreen underscores a clean lifestyle brand representing and catering to the health-minded, sustainable, and socially conscious demographic of the millennials and gen-Z-ers. In this sense, Sweetgreen is a generational play.
The Company serves plant-based foods including mostly salads and bowls with seasonal offerings and sides. It has grown three-fold since 2014 with profitability projected for 2025. Supply chain is not an issue since its ingredients are locally sourced.
Sweetgreen went public on the NYSE on Nov. 18, 2021, opening at $52 per share on 12.5 million shares. The stock hit a high of $56.20 before descending on an 11-day sell-off to hit lows of $24.33 before coiling. Oppenheimer expects a 20% CAGR for the chain as it expects to grow to over 1,000 restaurants over the next decade.
Analyst Ratings
A number of analysts' ratings were released after the initial quiet period on Dec. 13, 2021. There were seven firms starting their ratings. RBC Capital Markets started coverage with an Outperform rating with a $40 price target. Morgan Stanley started with an Overweight rating with a $39 price target. Oppenheimer started with an Outperform rating and $41 target. Goldman Sachs started with a Buy Rating and a $48 target. William Blair started with an Outperform rating. Cowen started with an Outperform rating and a $38 target. JP Morgan started coverage with an Overweight rating and a $36 price target.
SG Opportunistic Pullback Levels
Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for SG stock. Since the stock is a recent IPO, the wider time frame indicators including the weekly rifle chart are still materializing. The weekly rifle chart peaked just below the $56.58 Fibonacci (fib) level before collapsing to the $24.33 fib.
The weekly 5-period moving average (MA) is falling at $31.22 as the rest of the indicators need more time to materialize. The daily rifle chart is attempting to reverse the inverse pup breakdown as the daily 5-period MA flattens at $29.01 followed by the 15-period MA at $29.58. The daily stochastic formed a mini pup coiling towards the 40-band with a daily market structure low (MSL) buy trigger above $31.60. The daily upper Bollinger® Bands (BBs) sit near the $42.14 fib.
Prudent investors can look for opportunistic pullbacks at the $28.90 fib, $27.39 fib, $26.50 fib, $25.49 fib, $24,33 fib, $22.13 fib, $20.12 fib, and the $18.75 fib level. Upside trajectories range from the $40.50 level up towards the $50.23 fib level.