Today, Longbow Research downgraded Shake Shack (SHAK) to “neutral” from “buy” on concerns about its high valuation. However, the equity research company is positive on the company’s fundamentals, reports CNBC.
With Shake Shack’s SSSG (same-store sales growth) base for calculation continuing to expand outside of New York, Longbow expects the company’s SSSG to be modestly positive over the next 12–18 months. In the longer run, Longbow expects the opening of new restaurants and their improved productivity to drive Shake Shack’s growth.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Other analysts’ recommendations
Of the 11 analysts covering Shake Shack, 27.3% recommend “buy,” 63.6% recommend “hold,” and 9.1% recommend “sell.” Their average 12-month target of $52.90 for the stock implies an 11.1% fall from its April 16 price of $59.49.
Today, Wedbush raised its price target from $54 to $60, and on February 26, SunTrust Robinson raised it from $56 to $58. In contrast, Stifel and Piper Jaffray lowered their price targets that day, from $55 to $45 and $62 to $59, respectively.
Of the 31 analysts covering Chipotle Mexican Grill (CMG), 29.0% recommend “buy,” 54.8% recommend “hold,” and 16.1% recommend “sell.” Their average 12-month target of $604.38 for the stock implies a 14.5% fall from its April 16 price of $706.48.
Of the 23 analysts covering Wendy’s (WEN), 56.5% recommend “buy,” and 43.5% recommend “hold.” Their average 12-month target of $19.16 for the stock implies a 2.8% upside to its price of $18.63.
Of the 14 analysts covering Jack in the Box (JACK), 42.9% recommend “buy,” while 57.1% recommend “hold.” Their average 12-month target of $91 for the stock implies a 17.0% upside to its price of $77.79.
PepsiCo stock had risen 3.0% as of 10:44 AM EDT on April 17 after it announced better-than-expected earnings results for the first quarter.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.