Sweetgreen stock should be worth $17: Bank of America analyst

Sweetgreen Inc (NYSE: SG) will likely rally further over the next twelve months, said a Bank of America analyst today in a bullish note.

Sweetgreen stock has already more than doubled

The chain of fast casual restaurants has already more than doubled since late March. Still, Katherine Griffin is convinced the Sweetgreen stock can climb further to $17.

She expects the food stock to benefit as the company continues to automate its kitchens. Her research note reads:

“We see upside to unit economics as Sweetgreen continues to leverage investments in labour optimization technology, including automation.”

Sweetgreen launched its first automated kitchen earlier this year in May and plans on opening one more by the end of 2023. It recently launched the Mediterranean Mezze bowl exclusively on Grubhub.

Why else is she bullish on Sweetgreen stock?

Katherine Griffin is confident that the California-based company will succeed in delivering on its promise of increasing the total number of locations to 1,000 over the long term.

She likes Sweetgreen stock for the recently launched loyalty programme as well. In her research note, the Bank of America analyst also said:

The restaurant company that specializes in salads is scheduled to report its Q2 results in the final week of July. Consensus is for it to lose 2 cents a share versus 36 cents per share a year ago.