Tesla, Apple, and Shake Shack get another boost from bulls

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Bulls have been getting even more bullish lately.

With the market hitting record high after record high, analysts have been having a hard time keeping up with the crazy rallies in some of the market’s biggest gainers. In order to keep up with the surge, some analysts have started slapping huge price targets on equities like Shake Shack, Tesla and Apple.

Shake Shack (SHAK)

Most recently on Wednesday, Goldman Sachs put a $115, 12-month price target on Shake Shack. Analyst Katherine Fogertey’s price target represents a nearly 80% move higher from Tuesday’s closing price of $64.10 per share.

Shake Shack shares have been under serious pressure since November when the company reported sales that missed Wall Street estimates. The stock tanked more than 20% following the report. But Fogertey said in a note on Jan. 14 that two main reasons drove her to hike her price target to a Street high. First, management outlined plans for potential menu innovation. “[The] return of the Hot Chicken Sandwich, and new hot chicken nuggets, as well as vegetarian burgers [could help] to drive better than expected comps in 2020,” Fogertey wrote.

Second, Fogertey argued that management’s recent commentary at the ICR Conference regarding the company’s Grubhub migration process was positive. “[Management] indicated they completed the [point of sale] integration with GRUB yet only 40% of SHAKs have fully migrated to solely GRUB in POS,” she said.

Fogertey’s call sent Shake Shack stock soaring 9% Wednesday for its best day in 5 months. Nevertheless, shares are still down more than 33% from their all-time highs reached on Sept. 5, 2019.

Tesla (TSLA)

Tesla shareholders have had a lot to celebrate over the past few months. After posting a surprise third-quarter profit on Oct. 23, 2019, the stock surged and crossed above $300 for the first time since Mar. 1, 2019. Shares have been on a tear ever since and are up a whopping 112%, as of Tuesday’s close.

Tesla’s massive rally has given analysts little time to adjust their ratings and price targets. Oppenheimer analyst Colin Rusch went big with his call on Jan. 13. He raised his 12- to18-month price target on Tesla stock by nearly 60% to $612 from $385 per share.

“While Tesla has stumbled through growing pains, we believe the company has reached critical scale sufficient to support sustainable positive [free cash flow],” Rusch said in his note. “We believe Tesla has key advantages in power train design, battery technology, ADAS fleet size, roadmap to energy independence offerings, and consumer enthusiasm that can translate into material operating leverage, share gains, and market disruption as renewables and autonomy trends accelerate.”