What Analysts Recommend for Shake Shack ahead of 1Q18 Earnings


Apr. 30 2018, Updated 9:01 a.m. ET

Target price

As of April 24, 2018, Shake Shack (SHAK) was trading at $42.98. That same day, analysts were expecting the stock to reach $42.10 in the next 12 months, which represents a fall of 2.1% from its current stock price.

Its 2018 revenue guidance is lower than analysts’ expectations, which could have compelled analysts to lower their 12-month target prices. After the announcement of its 4Q17 earnings, Barclays cut its target price from $49 to $45, Morgan Stanley cut its target price from $46 to $44, and Jeffries cut its target price from $36 to $33.

Below are the target prices and return potentials for Shake Shack’s peers:

  • Chipotle Mexican Grill (CMG): target price of $318.68, which represents a fall of 4.3%
  • Jack in the Box (JACK): target price of $103.86 with a return potential of 17%
  • Wendy’s (WEN): target price of $18.95 with a return potential of 12.5%
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Analyst ratings

Of the 11 analysts following Shake Shack, 36.4% are favoring a “strong buy,” 45.5% are favoring a “buy,” and 18.2% are favoring a “sell.” Shake Shack stock typically moves in tandem with analysts’ ratings. When analysts raise their target prices, the stock usually moves up, and vice versa. Currently, Shake Shack is trading above analysts’ 12-month target price. However, that doesn’t mean an automatic “sell.” Investors are advised to analyze analysts estimates that we covered in this series before making any investment decisions.


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