Shake Shack stock rises on upgrade to ’Buy’

Published 01/04/2025, 12:36
© Reuters.

Investing.com -- Shares of Shake Shack (NYSE: NYSE:SHAK) climbed 3% in pre-market trading following an upgrade from Hold to Buy by Loop Capital analyst Alton Stump, who set a price target of $127. This target suggests a potential 44% upside from the previous day’s closing price.

The upgrade comes after a detailed analysis by Loop Capital, highlighting the potential for Shake Shack’s adjusted EBITDA to surpass the company’s own 2025 guidance. Stump’s optimism is rooted in the possibility of the company’s comparable sales outperforming expectations throughout the current year. In a report dated January 30, 2025, Loop Capital had discussed these prospects, and despite a subsequent 25% decline in Shake Shack’s stock since the report’s publication, Stump now sees a compelling entry point for investors.

In a statement, Stump expressed confidence in the stock’s prospects, "The shares of SHAK pulled back over 25% since our report was published two months ago, which we believe has created an attractive buying opportunity for investors."

Shake Shack’s recent stock movement can be attributed to this positive shift in analyst sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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