4 big analyst picks: 'Tide may be turning' for Sweetgreen, says Piper Sandler

Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: Upgrades at Sweetgreen, Nutrien, Bath & Body Works, and Verra Mobility.

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Sweetgreen surges on Piper Sandler upgrade

Sweetgreen (NYSE:SG) shares jumped more than 6% yesterday after Piper Sandler upgraded the company to Overweight from Neutral and raised its price target to $19 from $13, noting that margins are inflecting.

The upgrade comes after the analysts' review of the company's Q2 print late last week. Restaurant-level margins (RLMs) appear to have stabilized, say the analysts, showing promising improvements for the future. Currently, the trailing 12-month RLMs stand at 15.2%, and the last week’s reported Q2 earnings demonstrated a sequential increase of approximately 40 bps.

The analysts also highlighted the uniqueness and potential of the technology behind the Infinite Kitchen, which has garnered investor interest due to the RLM reaching 26% in June. And management anticipates a higher stabilized margin once the store reaches its full operational capacity.

Nutrien upgraded at TD Securities

TD Securities upgraded Nutrien (NYSE:NTR) to Buy from Hold and raised its price target to $83.00 from $72.00, as reported in real time on InvestingPro.

The company is set to report its Q2/23 earnings tomorrow after the market close. Street estimates stand at $2.83 for EPS and $11.08 billion for revenues.

2 more upgrades

Barclays upgraded Bath & Body Works (NYSE:BBWI) to Overweight from Equalweight and raised its price target to $45.00 from $41.00. Shares rose more than 1% pre-market today.

Verra Mobility (NASDAQ:VRRM) shares gained nearly 3% yesterday after Deutsche Bank upgraded the company to Buy from Hold and raised its price target to $26.00 from $21.00.

Recent travel data indicates a resilient environment, and we expect the company to beat revenues this year in its commercial services segment.

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