Sweetgreen Inc (SG) PT Lowered to $6.50 at UBS

UBS analyst Dennis Geiger lowered the price target on Sweetgreen Inc (NYSE: SG) to $6.50 (from $7.00) while maintaining a Neutral rating.

The analyst comments "Sweetgreen’s 2Q results & commentary highlighted a recovery in underlying trends supported by multiple drivers, but with near-term industry food safety incident headlines delaying further progress. Transaction trends improved through the quarter from down ~3% in April and May to ~flat in June, supported by targeted promotional activity and the launch of wraps. However, momentum was disrupted by the recent cyclospora outbreak, with ~600 bps of impact to July sss, according to the company, and an estimated impact of 600-700 bps to 3Q sss. Given the headwinds, ’26 guidance was lowered, including sss down 7-8% (from down 2-4%), restaurant margins of 10.5- 11.0% (from 14.2-14.7%), and adj EBITDA of -$27.0MM to -$23.0MM (from +$1.0- 6.0MM). We expect sales and traffic trends to remain pressured through 3Q given the cyclospora impact, with pressures easing into 4Q, with benefits from multiple sales drivers. We believe the risk/reward is ~balanced as performance remains pressured, but SG maintains drivers for solid sss and EBITDA growth over the longer term, with opportunities to reaccelerate development once sales and traffic growth recover."

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