Sweetgreen initiated with an Equal Weight at Barclays

Barclays initiated coverage of Sweetgreen (SG) with an Equal Weight rating and $16 price target The company offers industry-leading comp and unit growth, though its comps have eased of late and its ultimate U.S. penetration “is up for debate,” the analyst tells investors in a research note. The firm says that while Sweetgreen’s industry-leading growth “generally justifies an outsized valuation,” it is “challenging to define the appropriate multiple when the brand leads the broader industry on many fundamental metrics.” Sweetgreen appropriately trades at a modest discount to its high-growth peers, as its comp growth has been disappointing of late and is expected to be flattish in 2025, contends Barclays.