Sweetgreen initiated with a Sector Weight at KeyBanc

KeyBanc analyst Eric Gonzalez initiated coverage of Sweetgreen (SG) with a Sector Weight rating and no price target The company has a brand with potential to drive “already-strong” average unit volume higher, with commensurate margin expansion and “best-in-class” store growth, the analyst tells investors in a research note. The firm also views Sweetgreen as uniquely positioned to take advantage of automation opportunities. However, with the shares up over 230% year-to-date, KeyBanc will look for a more compelling entry point for the stock.