Today has been rather impressive for Shake Shack (NYSE:SHAK). Shares of SHAK stock are currently up approximately 17%, and this daily move has a number of investors interested in the various Shake Shack price predictions floating around in the market.
Indeed, the attraction toward fast food-related stocks makes sense. Companies like Shake Shack provide defensiveness that is hard to get right now. Yes, the bull market is raging on. However, stocks that provide defensive growth are in increasingly short supply.
Accordingly, it appears the market has warmed up to the idea of owning SHAK stock. In particular, one analysts sees impressive upside for this stock in the quarters to come.
Let’s dive into the big Shake Shack analyst upgrade that has the market talking today.
Shake Shack Price Predictions
Analysts at BTIG suggest that the earnings Shake Shack posted yesterday were better than expected. That may not add up at first glance to investors. The company reported revenues that missed analyst expectations. Additionally, Shake Shack provided forward-looking projections that missed what the Street was expecting.
Normally, these factors would result in a stock dipping hard. However, an upgrade and a $100 price target from BTIG suggests there’s potential SHAK stock has bottomed.
Among the factors BTIG has taken into consideration in coming up with this target is greater international travel, as well as a return to the work force, particularly among youth.
It appears analysts remain bullish on the company’s fundamentals, with upside trajectory overshadowing recent near-term results. Accordingly, longer-term investors seem to be jumping on SHAK stock right now.
SHAK stock currently still trades at a discount of roughly 35% from its peak earlier this year. Accordingly, there’s a value thesis to be had with owning this stock right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.