Shake Shack (NYSE:SHAK) Given New $79.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised its Shake Shack price target to $79 from $74 while maintaining an “equal weight” rating, implying 13.16% potential upside from the prior close.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $87.00; individual targets range from $66 to $90.
• Shake Shack shares rose 1.5% to $69.81. The company recently exceeded quarterly EPS estimates, reporting $0.43 versus a $0.31 consensus, while revenue increased 17.2% year over year.

Shake Shack (NYSE:SHAK - Get Free Report) had its price objective hoisted by research analysts at Morgan Stanley from $74.00 to $79.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price target suggests a potential upside of 13.16% from the company's previous close.

Several other equities analysts have also recently commented on SHAK. DA Davidson increased their target price on Shake Shack from $70.00 to $85.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Piper Sandler decreased their target price on Shake Shack from $79.00 to $66.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. Guggenheim reissued a "buy" rating and set a $90.00 price target on shares of Shake Shack in a report on Thursday. Seaport Research Partners began coverage on Shake Shack in a report on Wednesday, September 16th. They issued a "neutral" rating for the company. Finally, Weiss Ratings upgraded shares of Shake Shack from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, September 9th. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $87.00.

Shake Shack Stock Up 1.5%

Shares of NYSE:SHAK traded up $1.04 during mid-day trading on Thursday, hitting $69.81. 700,548 shares of the company traded hands, compared to its average volume of 1,753,373. The firm has a market cap of $2.99 billion, a P/E ratio of 74.27, a PEG ratio of 7.78 and a beta of 1.68. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.64 and a current ratio of 1.67. Shake Shack has a 52-week low of $51.60 and a 52-week high of $107.46. The firm's 50 day simple moving average is $66.22 and its 200 day simple moving average is $69.02.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. The firm had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%. Shake Shack's revenue for the quarter was up 17.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.44 EPS. On average, equities analysts anticipate that Shake Shack will post 1.13 EPS for the current year.

Institutional Trading of Shake Shack

A number of hedge funds have recently bought and sold shares of SHAK. 12 West Capital Management LP boosted its stake in shares of Shake Shack by 12.0% during the 4th quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company's stock worth $159,385,000 after acquiring an additional 210,000 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Shake Shack by 9.3% during the 1st quarter. Bank of America Corp DE now owns 899,013 shares of the company's stock valued at $79,536,000 after acquiring an additional 76,724 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Shake Shack by 2.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 670,111 shares of the company's stock valued at $59,276,000 after acquiring an additional 16,439 shares during the last quarter. Cannell & Spears LLC increased its holdings in shares of Shake Shack by 27.4% during the 1st quarter. Cannell & Spears LLC now owns 452,694 shares of the company's stock valued at $40,022,000 after acquiring an additional 97,446 shares during the last quarter. Finally, Wasatch Advisors LP raised its stake in shares of Shake Shack by 16.5% in the 1st quarter. Wasatch Advisors LP now owns 407,283 shares of the company's stock valued at $36,032,000 after acquiring an additional 57,612 shares in the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

Shake Shack Company Profile

Shake Shack Inc operates a fast-casual restaurant brand known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes, and beverages including beer and wine at select locations. Its menu emphasizes premium ingredients and includes vegetarian and other non-meat options.

The company began as a seasonal hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004. Shake Shack has since expanded through a combination of company-operated and licensed restaurants, with locations across the United States and in international markets, including parts of Asia, Europe and the Middle East.

Shake Shack also offers digital ordering, delivery, catering and merchandise.

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