Credit Suisse’s ratings
On June 25, Credit Suisse initiated its coverage on Shake Shack (SHAK) with an “outperform” rating and a target price of $77, which implies an upside potential of 15.4% from its closing price of $66.72 on June 24.
Analysts’ recommendations
Overall, analysts favor a “hold” rating for Shake Shack. Among the 11 analysts, 63.6% recommended a “hold” rating, 27.3% recommended a “buy” rating, and 9.1% recommended a “sell” rating. On average, analysts have a 12-month target price of $60.75, which implies a fall of 9.0% from its stock price of $66.72.
Since the announcement of Shake Shack’s first-quarter earnings on May 2, Cowen and Company, J.P. Morgan, Stifel, SunTrust Robinson, Wedbush, Morgan Stanley, and Jefferies raised their target prices.
- SunTrust Robinson raised its target price from $58 to $70.
- Cowen and Company raised its target price twice—first from $55 to $65 and later to $66.
- Wedbush raised its target price from $60 to $65.
- Stifel raised its target price from $45 to $50
- Jefferies raised its target price from $45 to $55.
Peer comparisons
Analysts are favoring a “buy” rating for McDonald’s (MCD). Among the 31 analysts that follow the stock, 77.4% recommended a “buy” rating, while 22.6% recommended a “hold” rating. On average, analysts have given McDonald’s a 12-month target price of $216.92, which implies an upside potential of 6.4% from its target price of $203.92.
Analysts favor a “hold” rating for Chipotle Mexican Grill (CMG). Among the 32 analysts that follow the stock, 46.9% recommended a “hold” rating, 34.4% recommended a “buy” rating, and 18.8% recommended a “sell” rating. Analysts have a 12-month target price of $688.0 for Chipotle Mexican Grill, which implies a fall of 5.0% from its stock price of $724.13.