Loop Capital upgraded Shake Shack (SHAK) to Buy from Hold with a price target of $127, up from $98. The firm believes concerns over the company’s slower growth in October are “overblown.” Shake Shack is growing units at a low double-digit to mid-teen pace, has industry-leading store level returns, and will likely generate modestly positive comparable sales growth over the next 12-18 months, the analyst tells investors in a research note. Loop says these attributes make the valuation implied by its new price target “easily justifiable.” Shake Shack shares in premarket trading are up 1% to $91.26.
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