In anticipation of first-quarter earnings, Raymond James analyst Brian Vaccaro has revised the price target for Shake Shack (SHAK, Financial) from $160 to $145. Despite this adjustment, the firm upholds a Strong Buy rating on the restaurant's shares. This update is part of a broader analysis of the restaurant sector as it gears up for Q1 performance reviews.
The research suggests a cautious approach towards restaurant stocks due to expected uneven results. Analysts foresee a divergence in performance among companies, with some gaining market share while others fall behind. Additionally, tariff updates are expected to reveal minimal impact on costs and margins for U.S. based restaurants.
Moreover, the firm notes a reserved outlook from most executives concerning the U.S. economic climate and international market conditions. As these factors unfold, investors and stakeholders are advised to stay informed on how these dynamics could influence the restaurant industry in the upcoming quarter.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Shake Shack Inc (SHAK, Financial) is $123.86 with a high estimate of $160.00 and a low estimate of $85.00. The average target implies an upside of 50.03% from the current price of $82.56. More detailed estimate data can be found on the Shake Shack Inc (SHAK) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Shake Shack Inc's (SHAK, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Shake Shack Inc (SHAK, Financial) in one year is $101.22, suggesting a upside of 22.6% from the current price of $82.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Shake Shack Inc (SHAK) Summary page.
