Goldman Sachs on Wednesday increased its price target on shares of Shake Shack to $115, roughly 80% higher than where shares traded at Tuesday’s close.
The upgrade is based on positive comments Shake Shack management made around the restaurant’s exclusive partnership with GrubHub.
Shares of Shake Shack surged 10% Wednesday.
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Goldman Sachs is a fan of Shake Shack.
On Wednesday, Goldman Sachs raised its 12-month price target on shares of the restaurant chain to $115 based on a long-term discounted cash flow that contemplates 645 company-owned units and 850 domestic and international licensed units by 2038, according to a Wednesday note.
That’s a roughly 80% gain from where shares of the fast-food joint traded at Tuesday’s close. Shares of Shake Shack rose as much as 10% Wednesday.
Goldman’s price upgrade and reaffirmed “buy” rating on the company come following a presentation from Shake Shack’s CEO Randy Garutti and CFO Tara Comonte at the ICR Conference in Orlando, Florida. During the presentation, Shake Shack management made positive comments about the company’s integration with GrubHub, analyst Katherine Fogertey wrote in a note Wednesday.
So far, “details around the GRUB integration suggest the disruption could …read more
Source:: Businessinsider – Finance