Wedbush analyst Nick Setyan upgraded Shake Shack (SHAK) to Outperform from Neutral with a price target of $77, up from $53. The stock closed Wednesday down $1.16 to $53.92.
Shake Shack was the "preeminent" growth story within restaurants pre-COVID, and the growth story "is even more attractive post-COVID," Setyan tells investors in a research note. As management increases digital investments and aggressively targets multiple unit formats, Shake Shack's long-term domestic company unit target of 450 "could prove meaningfully conservative," says the analyst.
Setyan believes the adverse impact from the company's relative urban exposure and the potentially elongated recovery in sales this may cause is now well understood by investors.
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