Is Shake Shack on the Rise?
Analysts’ recommendations
Shake Shack (SHAK) is currently trading at $44.6. Many of the estimates we’ve seen in this series have been factored into the company’s share price. With this, let’s look at analysts’ recommendations and price target for the company’s share price over the next year.
9% upside
Currently, Wall Street analysts have a price target of $48.6 on Shake Shack. This represents a 9% upside from the company’s share price of $44.6. About 77% of analysts have “hold” recommendations on SHAK, 22% of analysts have “sell” recommendations, and none have “buy” recommendations on the company. So overall, the stock has a “hold” rating.
Shake Shack’s trading below analysts’ consensus target price does not necessarily mean that the company is a “buy.” Investors must be careful to also look at where the company’s valuation multiples are trading. We’ll cover this next in more detail. We’ll also take a look at Shake Shack’s peers such as Chipotle Mexican Grill (CMG), Habit Restaurants (HABT), and Jack in the Box (JACK).
You can access Chipotle through the Consumer Discretionary Select Sector SPDR ETF (XLY). XLY’s portfolio consists of holdings of 4% in McDonald’s (MCD), 3% in Starbucks (SBUX), and 1.5% in Yum! Brands (YUM).
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