By Dhirendra Tripathi
Investing – Shake Shack (NYSE:SHAK) shares rose more than 7% Tuesday after landing upgrades from analysts at Goldman Sachs (NYSE:GS) and Wedbush, citing long-term prospects for the company.
Goldman Sachs has a target of $109 and Wedbush $118 on Shake Shack shares. This is 20% and 30% higher, respectively, than the stock’s current level of $90.
“The company’s small size and unique footprint drive a lag in the company’s recovery from COVID, making it one of the last re-opening plays in the space,” Goldman Sachs analysts led by Jared Garber wrote in a note.
A larger focus on urban areas has kept some of the bounce back that more broadly placed food chains and retailers have experienced away from Shake Shack.
An increase drive-thru service and investments in its digital footprint are some of the upgrades Shake Shack has planned to pull in customers.
Goldman says the stock pullback is “a buying opportunity for a company with significant growth potential.”
Wedbush says the company has an addressable market of more than 1,000 locations in the aftermath of Covid-19.