Cowen cut its rating on restaurant stock Sweetgreen ( NYSE: SG ) to Market Perform from Outperform on Tuesday.
Analyst Andrew Charles and team worry the external environment presents risks to Sweetgreen's ( SG ) same-store sales that will challenge the organicpath to profitability. The firm lowered 2023-25E adjusted EBITDA marks below consensus. The Sweetgreen target for 1,000 stores by 2030 is also called optimistic as Cowen prefers to model for 900 new stores.
"We continue to believe sweetgreen successfully marries the two industry mega-themes of the last decade of guest facing technology & transparent food sourcing that presents a longterm moat for the business. However, the external environment has changed significantly since the November 2021 IPO that we believe will present continued challenges to the business for the foreseeable future."
The Seeking Alpha Quant Rating on Sweetgreen ( SG ) is flashing Strong Sell.
Shares of Sweetgreen ( SG ) fell 3.36% premarket to $10.65 vs. the 52-week trading range of $7.81 to $40.10.
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Sweetgreen falls after Cowen turns cautious on near-term setup