In-Depth Examination Of 18 Analyst Recommendations For Shake Shack
In the last three months, 18 analysts have published ratings on Shake Shack (NYSE:SHAK), offering a diverse range of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 0 | 7 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 2 | 0 | 0 |
| 2M Ago | 5 | 0 | 0 | 1 | 0 |
| 3M Ago | 3 | 0 | 4 | 1 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $113.33, a high estimate of $125.00, and a low estimate of $90.00. Witnessing a positive shift, the current average has risen by 0.13% from the previous average price target of $113.18.
Deciphering Analyst Ratings: An In-Depth Analysis
A clear picture of Shake Shack's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Nick Setyan | Wedbush | Lowers | Neutral | $90.00 | $110.00 |
| Sara Senatore | B of A Securities | Lowers | Neutral | $96.00 | $116.00 |
| Brian Harbour | Morgan Stanley | Lowers | Equal-Weight | $100.00 | $108.00 |
| Jake Bartlett | Truist Securities | Raises | Buy | $125.00 | $124.00 |
| Andrew Charles | TD Cowen | Maintains | Buy | $125.00 | $125.00 |
| Andrew Charles | TD Cowen | Maintains | Buy | $125.00 | $125.00 |
| Christine Cho | Goldman Sachs | Announces | Buy | $110.00 | - |
| Andrew Charles | TD Cowen | Maintains | Buy | $125.00 | $125.00 |
| John Ivankoe | JP Morgan | Raises | Underweight | $105.00 | $102.00 |
| Andrew Charles | TD Cowen | Maintains | Buy | $125.00 | $125.00 |
| John Ivankoe | JP Morgan | Raises | Underweight | $102.00 | $100.00 |
| Peter Saleh | BTIG | Raises | Buy | $125.00 | $120.00 |
| Dennis Geiger | UBS | Raises | Neutral | $115.00 | $110.00 |
| Jeffrey Bernstein | Barclays | Raises | Equal-Weight | $108.00 | $92.00 |
| Jake Bartlett | Truist Securities | Raises | Buy | $124.00 | $115.00 |
| Nick Setyan | Wedbush | Raises | Neutral | $110.00 | $100.00 |
| David Tarantino | Baird | Raises | Neutral | $105.00 | $102.00 |
| Andrew Charles | TD Cowen | Maintains | Buy | $125.00 | $125.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Shake Shack. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Shake Shack compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Shake Shack's stock. This examination reveals shifts in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Shake Shack's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Shake Shack analyst ratings.
Unveiling the Story Behind Shake Shack
Shake Shack Inc is a roadside burger stand. It is serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order and served on a non-genetically modified organism (GMO) potato bun. Its menu focuses on food and beverages, crafted from a range of classic American foods. The company serves draft Root Beer, seasonal freshly-squeezed lemonade, organic fresh brewed iced tea, cold brew coffee, organic apple juice, and Shack20 bottled water.
Financial Insights: Shake Shack
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Shake Shack's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.7% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Shake Shack's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.7%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Shake Shack's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.46%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.13%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.74, Shake Shack adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.