TD Cowen analyst Andrew Charles maintained a Buy rating on Shake Shack (SHAK – Research Report) today and set a price target of $105.00.
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Andrew Charles has given his Buy rating due to a combination of factors that indicate potential growth for Shake Shack. The company is expected to see an improvement in same-store sales, driven by new menu innovations, despite some uncertainties in the macroeconomic environment. The brand’s ability to adapt to industry challenges and improve sales trends over recent months suggests that the worst of the sales challenges may be behind them.
Furthermore, Shake Shack’s margin and development stories are showing positive signs, with an increase in restaurant-level margin guidance even in a challenging sales environment. The company’s shares are trading below the three-year average multiple, presenting a potential opportunity for growth. Additionally, the launch of new culinary innovations, such as the Summer BBQ line-up and upcoming seasonal menu items, is expected to bolster sales further, supporting the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $100.00 price target.