Shake Shack (NYSE:SHAK) news for Friday includes an analyst initiating coverage sending SHAK stock higher.
The good news for Shake Shack stock comes from Loop analyst Lynne Collier. In its note, the firm starts its coverage of SHAK stock with a buy rating. To go along with this, it also has a price target of $78 for the stock.
To put that price target into perspective, SHAK stock closed out trading on Thursday at 64.87 per share. That means that Collier is expecting a 20.2% upside for SHAK stock.
It’s worth noting that the buy rating for SHAK stock comes as the company suffers due to the novel coronavirus. It, alongside most of service companies and retailers, has been seeing a decrease in traffic thanks to lockdowns.
Luckily, markets are continuing to recover from the pandemic. Adding to that, the Loop analyst Shake Shack says that a brand transformation has started at the company. These factors have it poised to make a strong return once life starts to return to normal.
Collier said this in a note obtained by CNBC.
“The company has pivoted to off-premise and digital which we expect to drive outsized comps over the intermediate term. Further, we view SHAK as a compelling fast-casual brand with a long runway for unit growth over the next several years.”
SHAK stock was up 2.9% when markets closed on Friday. It’s also up 9.2% year-to-date.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
